Which of the Following Is a Drawback of Pursuing a Multidomestic

question 90

Multiple Choice

Which of the following is a drawback of pursuing a multidomestic strategy?

• A) The strategy allows for the lowest possible local responsiveness.
• B) The strategy lowers the differentiation of a firm's product and service offerings.
• C) The strategy exposes a firm to greater exchange rate fluctuation when compared to an international strategy.
• D) The strategy is costly and inefficient because it requires the duplication of key business functions across several countries.

---

Definitions:

Column Variable

A variable in data represented by columns in a table, often used in statistical analyses to differentiate groups or conditions.

Critical Value

A threshold value that defines the boundary of the critical region, where if the test statistic exceeds this value, the null hypothesis is rejected.

Alpha

A threshold value used in hypothesis testing that represents the level of significance, typically set at 0.05 or 0.01, indicating the probability of wrongly rejecting the null hypothesis.

Chi-square Statistic

A statistical measure used to determine if there is a significant relationship between two categorical variables.