The Strength of a "Think-Local, Act-Local" Multidomestic Strategy Is That

question 9

Multiple Choice

The strength of a "think-local, act-local" multidomestic strategy is that

• A) it matches a company's competitive approach to prevailing market and competitive conditions in each country market, country by country.
• B) it employs strategies that are almost totally different from and also unrelated to its strategies in other countries.
• C) it operates independent plants, located in different countries, thus promoting greater achievement of scale economies.
• D) it avoids host country ownership requirements and import quotas.
• E) it eliminates the costs and burdens of trying to coordinate the strategic moves undertaken in one country with the moves undertaken in the other countries.

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Definitions:

Underapplied Amount

The shortfall when the allocated budgeted or standard cost amount is less than the actual expense.

Raw Materials

The basic, unprocessed inputs required for the production process, such as metals, wood, and agricultural products.

Units Requisitioned

Describes the quantity of inventory items requested or ordered for production or usage in a business operation.

Production

The process of creating, manufacturing, or enhancing goods and services through the combination of labor, materials, and machinery.