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:

Team Potency

The collective belief among team members that they can be effective and achieve their goals together.

Network Centralization

A measure of the extent to which network ties are concentrated in one or a few nodes or individuals within a network, impacting communication and power dynamics.

Integration

The process of combining different systems, processes, or organizational functions to work more effectively as a whole.

Consistency

Refers to the adherence to the same principles, course, form, etc., over time.