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:

Cost of Goods Sold

Expenses directly arising from the production of goods a company offers for sale, involving labor and materials.

Direct Costs

Costs that can be traced directly to the production of specific goods or services, such as raw materials and labor.

Direct Manufacturing Cost

Expenses directly associated with the production of goods, including labor and materials.

Units Produced

The aggregate count of finished products produced over a designated time frame.