A multidomestic strategy is the most appropriate strategy for international operations because it drives economies of scale as far as possible and provides a middle-of-the-road product that appeals to the largest number of consumers in every market.
Answer the following statement true (T) or false (F)
False
A firm whose emphasis is on differentiating its product and service offerings to adapt to local markets follows a multidomestic strategy. Decisions evolving from a multidomestic strategy tend to be decentralized to permit the firm to tailor its products and respond rapidly to changes in demand. This enables a firm to expand its market and to charge different prices in different markets. For firms following this strategy, differences in language, culture, income levels, customer preferences, and distribution systems are only a few of the many factors that must be considered. Even in the case of relatively standardized products, at least some level of local adaptation is often necessary.
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If one country is hit with a shock that increases the value of its currency and causes its net exports to decline and the net exports and income of other countries to rise, then the business cycle is being transmitted internationally through ____ effect.
A. a trade B. an interest-rate C. an exchange-rate D. an expected-inflation
If restructuring charges are not calculated correctly, the charges can be used to fraudulently manipulate income
a. True b. False Indicate whether the statement is true or false
A transcendent education teaches students to think beyond self-interest and profitability-in fact, to
A. promote one's industry. B. consider sales and revenues over the strategic time frame. C. leave a legacy that extends beyond the bottom line. D. train one's successors. E. contribute to philanthropic causes.
In many countries, the terms under which companies compete, the actions that must be taken or avoided, and the terms of trade of various transactions are determined by _____.
A. the governments of the countries in which the subsidiaries operate B. the fluctuations in the exchange rates of the currencies of the countries in which the subsidiaries operate C. direct negotiation between the host government and the multinational corporation D. the ability to curtail unprofitable operations E. the host government only