Two Drawbacks of a "Think Local,act Local" Multidomestic Strategy Are

question 68

Multiple Choice

Two drawbacks of a "think local,act local" multidomestic strategy are

• A) that it is especially vulnerable to fluctuating exchange rates and that it can usually be defeated by companies employing cross-border coordination techniques.
• B) excessive vulnerability to fluctuating exchange rates and having to craft a separate strategy for each country market in which the company competes.
• C) hindering a company's transfer of competencies and resources across country boundaries (since somewhat different competencies and capabilities are likely to be employed in different host countries) and not promoting the building of a single, unified competitive advantage in all country markets where a company competes.
• D) greater exposure to both increases in tariffs and restrictive trade barriers and added difficulty in accommodating the diverse trade restrictions and regulatory requirements of host governments.
• E) not being able to export products manufactured in one country to markets in other countries and being largely unsuitable for competing in the markets of emerging countries.

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Definitions:

Constrain our Choices

The limitations placed on decision-making by external factors such as societal norms, economic conditions, or legal restrictions.

Marriage Market

The social space in which individuals search for potential marriage partners, often influenced by factors such as socioeconomic status, cultural norms, and personal preferences.

Financial Assets

Economic resources or investments that have monetary value, such as stocks, bonds, or bank deposits.

Wealth Concentration

A situation where a disproportionate segment of a country's wealth is owned by a small percentage of its population.