The Main Drawback of a Multinational Strategy Is That It

question 84

Multiple Choice

The main drawback of a multinational strategy is that it does not allow a company to ________.

• A)exploit scale economies in product development or marketing
• B)closely monitor buyer preferences in each local market
• C)modify its products except for the most superficial features
• D)respond quickly and effectively to emerging buyer preferences

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Definitions:

Physical Commodity

Tangible goods such as metals, oil, grain, which are traded on commodity markets and can be physically delivered.

Government Backing

Support or endorsement from a government body, often through policies, subsidies, or direct financial aid.

Gold Standard

A currency where the value is determined by the ability to trade it for a specified amount of gold (i.e., $1 for 1/35 of an ounce) at a government-approved bank.

Currency Value

The worth of a currency in terms of the amount of goods or services that one unit of the currency can purchase.