Two Major Drawbacks of a Think Local,act Local Multidomestic Strategy

question 30

Multiple Choice

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

• A)that it is especially vulnerable to fluctuating exchange rates and 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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