The Main Benefit of a Multidomestic Strategy Is That It

question 16

Multiple Choice

The main benefit of a multidomestic strategy is that it ________.

• A) exploits scale economies in product development and marketing
• B) is cost-saving due to product and marketing standardization
• C) takes advantage of location economies
• D) responds quickly and effectively to emerging buyer preferences

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Definitions:

Exports and Imports

Describes goods and services sold to other countries (exports) and goods and services purchased from other countries (imports).

Flexible Exchange Market

A foreign exchange system where the value of currencies are determined by market forces without direct government intervention.

Equilibrium Exchange Rate

The exchange rate at which the demand for a currency equals its supply in the foreign exchange market, resulting in a stable market price.

Euros

The official currency of the Eurozone, which is used by 19 of the 27 European Union countries, known collectively as the Euro area.