In Which of the Following Situations Is Employing a "Think

question 106

Multiple Choice

In which of the following situations is employing a "think local,act local" multidomestic strategy highly questionable?

• A) When a company desires to transfer competencies and resources across country boundaries and is striving to build a single,uniform competitive advantage worldwide
• B) When there are significant country-to-country differences in customer preferences and buying habits industry is characterized by big economies of scale and strong experience curve effects
• C) When the trade restrictions of host governments are diverse and complicated
• D) When there are significant country-to-country differences in distribution channels and marketing methods
• E) When host governments enact regulations requiring that products sold locally meet strictly defined manufacturing specifications or performance standards

---

Definitions:

Depreciation Expense

An accounting method for allocating the cost of a tangible asset over its useful life, reflecting the asset's decrease in value over time.

Impairment Review

An examination of assets to determine if their carrying value exceeds their recoverable amount, potentially leading to an impairment loss.

Property, Plant

Property, Plant, and Equipment (PP&E) are long-term tangible assets used in the operation of a business and not intended for sale.

Significant Change

A major alteration or transformation in a situation, process, or condition.