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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Definitions:

Speciation

Speciation is the evolutionary process by which populations evolve to become distinct species, typically by being geographically isolated from one another and experiencing different environmental pressures.

Reproductive Isolating Mechanism

Biological features of organisms that prevent species from interbreeding and producing fertile offspring.

Temporal Isolation

A reproductive isolation mechanism where two species breed at different times of the day, season, or years, preventing them from mating.

Allele Frequency

The proportion of a specific allele variant among all allele variations for the same gene in a given population.