What Is a Primary Drawback of a Localized Multidomestic Strategy

question 108

Multiple Choice

What is a primary drawback of a localized multidomestic strategy?

• A)It hinders the use of cross-border coordination of a company's activities and increases a company's vulnerability to adverse shifts in currency exchange rates.
• B)It makes it very difficult to take into account significant country-to-country differences in distribution channels and marketing methods.
• C)It makes it difficult and costly to be responsive to country-to-country differences in customer needs, buying habits, cultural traditions, and market conditions.
• D)It hinders the transfer of a company's competencies and resources across country boundaries and hinders the pursuit of a single, uniform competitive advantage in all country markets where a company operates.
• E)It is unsuitable for competing in the markets of emerging countries and posing added difficulty in modifying a company's business model to compete on the basis of low price.

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Definitions:

Communication Flow

The way information moves and is exchanged within an organization or between individuals, encompassing the direction, channels, and effectiveness of communication.

Energy

The quantitative property that must be transferred to an object in order to perform work on, or to heat, the object; can be kinetic, potential, thermal, electrical, chemical, nuclear, or other various forms.

Information

Data that is processed and organized in a way that it can be used to enhance understanding and decision-making.

Ecological Term

In social work, it pertains to an approach that considers individuals within the context of their environment and the complex interactions between them.