Two Drawbacks of a "Think Local,act Local" Multidomestic Strategy Are

question 41

Multiple Choice

Two drawbacks of a "think local,act local" multidomestic strategy are

• A) that it is especially vulnerable to fluctuating exchange rates and that it can usually be defeated by companies employing cross-market subsidization tactics.
• B) excessive vulnerability to fluctuating exchange rates and having to craft a separate strategy for each country market in which the company competes.
• C) hindering a company's transfer of competencies and resources across country boundaries (since somewhat different competencies and capabilities are likely to be employed in different host countries)and not promoting the building of a single,unified competitive advantage in all country markets where a company competes.
• D) greater exposure to both increases in tariffs and restrictive trade barriers and added difficulty in accommodating the diverse trade restrictions and regulatory requirements of host governments.
• E) not being able to export products manufactured in one country to markets in other countries and being largely unsuitable for competing in the markets of emerging countries.

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