A Think Local,act Local Multidomestic Strategy Works Particularly Well When

question 61

Multiple Choice

A think local,act local multidomestic strategy works particularly well when

• A) host governments enact regulations requiring that products sold locally meet strictly defined manufacturing specifications or performance standards.
• B) there are significant country-to-country differences in customer preferences and buying habits.
• C) diverse and complicated trade restrictions of host governments preclude the use of a uniform strategy from country to country.
• D) there are significant country-to-country differences in distribution channels and marketing methods.
• E) All of these choices are correct.

---

Definitions:

Fixed Overhead

Charges that keep the same level despite the degree of manufacturing or sales activities, including space rental, worker wages, and protection plans.

Predetermined Overhead Rate

An estimated overhead cost rate used in cost accounting to allocate overhead expenses to products or job orders.

Direct Labor Costs

Compensation and perks given to workers directly engaged in creating products or services.

Fixed Overhead

Regular, unchanged costs associated with operating a business, such as rent and salaries, irrespective of production levels.