Which of the Following Statements Is True of a Multidomestic

question 97

Multiple Choice

Which of the following statements is true of a multidomestic strategy?

• A) Firms frequently use a multidomestic strategy when entering host countries with large and/or idiosyncratic local markets.
• B) The multidomestic strategy is one of the main strategies companies pursued in the Globalization 1.0 stage.
• C) Companies pursuing a multidomestic strategy generally follow a cost-leadership strategy at the business level.
• D) The multidomestic strategy effectively protects firms from the risk of intellectual property appropriation.

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Definitions:

Straight-Line Depreciation

A method of calculating depreciation of an asset, where the expense is evenly spread over its useful life.

Initial Investments

The initial capital outlay required to start a business, purchase assets, or invest in securities.

Income Tax Rate

The tax rate applied to the income of companies or individuals.

After-Tax Discount Rate

A discount rate that takes into account the effect of taxes when evaluating the net present value of investments or projects.