Multidomestic Strategy Quiz
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Questions and Answers

What is the primary emphasis of a multidomestic strategy?

  • Differentiating products and services to adapt to local markets (correct)
  • Locating all activities in the most beneficial locations
  • Centralizing all decisions for global efficiency
  • Prioritizing knowledge flows and organizational learning

In a multidomestic strategy, how are decisions typically made?

  • Decentralized to local markets (correct)
  • Determined by a committee of global and local representatives
  • Centralized at the global headquarters
  • Centralized for some activities and decentralized for others

Which of the following factors are considered in tailoring products and services for local markets in a multidomestic strategy?

  • Optimal locations for specific value chain activities
  • Global supply chain efficiencies and economies of scale
  • Organizational learning and knowledge transfer across markets
  • Language, culture, income levels, customer preferences, distribution systems (correct)

What is a potential strength of a multidomestic strategy?

<p>Ability to adapt products and services to local market conditions (D)</p> Signup and view all the answers

What is a potential limitation of a multidomestic strategy?

<p>Both B and C (B)</p> Signup and view all the answers

In a transnational strategy, what trade-offs are sought?

<p>Efficiency versus local adaptation versus organizational learning (A)</p> Signup and view all the answers

How are assets and capabilities disbursed in a transnational strategy?

<p>According to the most beneficial location for a specific activity (A)</p> Signup and view all the answers

What is a potential strength of a transnational strategy?

<p>All of the above (D)</p> Signup and view all the answers

In a transnational strategy, what pressures are high?

<p>Pressure for local adaptation and lowering costs (C)</p> Signup and view all the answers

Which strategy involves centralization of some value chain activities and decentralization of others?

<p>Transnational strategy (C)</p> Signup and view all the answers

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