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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?

Ability to adapt products and services to local market conditions Signup and view all the answers

What is a potential limitation of a multidomestic strategy?

Both B and C Signup and view all the answers

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

Efficiency versus local adaptation versus organizational learning Signup and view all the answers

How are assets and capabilities disbursed in a transnational strategy?

According to the most beneficial location for a specific activity Signup and view all the answers

What is a potential strength of a transnational strategy?

All of the above Signup and view all the answers

In a transnational strategy, what pressures are high?

Pressure for local adaptation and lowering costs Signup and view all the answers

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

Transnational strategy Signup and view all the answers