The Drawbacks of a Localized Multidomestic Strategy Include

question 28

Multiple Choice

The drawbacks of a localized multidomestic strategy include

• A)hindering the use of cross-market subsidization techniques and increasing company vulnerability to adverse shifts in currency exchange rates.
• B)the difficulty in taking into account significant country-to-country differences in distribution channels and marketing methods.
• C)the difficulty in and costs of being responsive to country-to-country differences in customer needs,buying habits,cultural traditions,and market conditions.
• D)hindering the transfer of a company's competencies and resources across country boundaries and hindering the pursuit of a single,uniform competitive advantage in all country markets where a company operates.
• E)being unsuitable for competing in the markets of emerging countries and posing added difficulty in building multiple profit sanctuaries.

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Definitions:

Compete

To strive for a goal, such as a prize or higher status, against others by overcoming challenges and obstacles.

Topsoil

The uppermost layer of soil, which has the highest concentration of organic matter and microorganisms, and is where most plant roots grow.

Productivity

The rate at which goods or services are produced, especially in relation to the input of labor, materials, and energy.

Contour Farming

An agricultural technique wherein farming practices are executed following the natural contours of the land, aimed at reducing soil erosion.