Which of the Following Statements Regarding Multidomestic and Global Competition

question 108

Multiple Choice

Which of the following statements regarding multidomestic and global competition is false?

• A) In global competition, rivals vie for worldwide market leadership and the leading competitors compete head-to-head in the markets of many different countries.
• B) In globally competitive industries, a company's competitive position in one country both affects and is affected by its position in other countries.
• C) In multidomestic competition, there is greater cross-country variation in market conditions and the nature of the competitive contest among rivals than tends to be the case in globally competitive markets.
• D) With multidomestic competition, the competitive contest is localized, with rivals battling for national market leadership; moreover, winning in one country market does not necessarily signal that a company has the ability to fare well in the markets of other countries.
• E) In global competition, the size of a firm's worldwide competitive advantage (or disadvantage) equals the sum of the competitive advantages (or disadvantages) it has in each country market where it competes.

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