A "Think-Local, Act-Local" Multidomestic Type of Strategy

question 26

Multiple Choice

A "think-local, act-local" multidomestic type of strategy

• A)is very risky, given fluctuating exchange rates and the propensity of foreign governments to impose tariffs on imported goods.
• B)is usually defeated by a "think-global, act-global" type of strategy.
• C)is more appealing when the country-to-country differences in buyer tastes, cultural traditions, and market conditions are diverse.
• D)is generally an inferior strategy when one or more foreign competitors are pursuing a global low-cost strategy.
• E)can defeat a global strategy if the "think-local, act-local" multicountry strategist concentrates its efforts exclusively in those foreign markets which have superior resources.

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Definitions:

Cognitive Dissonance

The psychological discomfort experienced by someone who holds two or more contradictory beliefs, ideas, or values at the same time.

Attribution-helplessness

A psychological phenomenon where individuals attribute their inability to control events to their own lack of ability, leading to feelings of helplessness.

Cognitive Triad

A concept in cognitive therapy that describes a pattern of thinking involving negative views about the self, the world, and the future.

Object Relations

A theory in psychoanalysis focusing on the relationships between individuals and the external objects (often other people) that represent significant others in one’s life.