A Disadvantage of a Multinational Model Is That It

question 35

Multiple Choice

A disadvantage of a multinational model is that it

• A)cannot easily transfer core skills among international operations.
• B)does not give any freedom to its subsidiaries to respond to local conditions.
• C)standardizes its goods and services, ignoring customers' preferences.
• D)cannot easily launch a coordinated global attack against competitors.
• E)centralizes functions of research and development to the parent company.

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Definitions:

Tacit Knowledge

The knowledge that is difficult to transfer to another person by writing it down or verbalizing it; often gained through personal experience.

Intuition

The ability to understand or know something immediately, without the need for conscious reasoning.

Problem Identification

The initial step in the problem-solving process where the issue is clearly defined and understood before seeking solutions.

Stakeholders

Individuals, groups, or organizations that have an interest or concern in an organization and can be affected by the organization's actions, objectives, and policies.