What Are Two Drawbacks of a "Think Local,act Local" Multidomestic

question 103

Multiple Choice

What are two drawbacks of a "think local,act local" multidomestic strategy?

• A) The especially high vulnerability to fluctuating exchange rates and the fact it can usually be defeated by companies employing cross-border coordination techniques.
• B) The excessive vulnerability and exposure that exists to fluctuating exchange rates and the need to craft a separate strategy for each country market in which the company competes.
• C) The hindering of a company's transfer of competencies and resources across country boundaries (since somewhat different competencies and capabilities are likely to be employed in different host countries)and that it does not promote the building of a single unified competitive advantage in all country markets where a company competes.
• D) The greater exposure to both increases in tariffs and restrictive trade barriers and the added difficulty in accommodating the diverse trade restrictions and regulatory requirements of host governments.
• E) Not being able to export products manufactured in one country to markets in other countries and the fact that the strategy is largely unsuitable for competing in the markets of emerging countries.

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