What Is the Major Advantage of a Multidomestic Strategy

question 38

Multiple Choice

What is the major advantage of a multidomestic strategy?

• A) The ability to gain market share or charge higher prices for customized product offerings and marketing approaches to local conditions
• B) The significant cost savings associated with not having to customize products and marketing approaches to different national conditions
• C) The high-quality skills of foreign manufacturers and the specialized knowledge of foreign managers about the needs of local customers
• D) The reduced level of risk owing to the managers' full control over all aspects of their foreign subsidiary's operations

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Definitions:

Useful Life

The estimated period over which an asset is expected to be usable by the entity, affecting its depreciation calculations.

Average Rate of Return

This refers to the percentage of average annual profit compared to the initial investment cost, commonly used to evaluate the profitability of an investment.

Average Rate of Return

A financial ratio that calculates the return, or profit, of an investment over a certain period as a percentage of the initial cost of the investment.

Economic Conditions

The state of a country's economy at a given time, influenced by factors such as GDP, unemployment rates, and inflation.