Respuesta :
The statement is True. When multinational enterprises enter host countries such as Saudi Arabia and Japan, the most logical option is usually to pursue a multidomestic strategy even though that strategy rarely leads to significant cost reductions.
A multi-domestic approach is a strategy by way of which businesses try to reap the most local responsiveness with the aid of customizing both their product imparting and advertising approach to shape special country-wide situations. manufacturing, marketing, and R&D sports have a tendency to be mounted in every most important countrywide marketplace in which business is executed. A strategy that allows personal subsidiaries of a multinational firm to compete independently in one-of-a-kind domestic markets. The multinational headquarters coordinates economic controls and some advertising and marketing policies and can centralize some R&D and component manufacturing.
Change use of the time period describes the organization of multi-countrywide companies. global or multinational companies benefit economies of scale via shared overhead, and market similar products in more than one nation. Multi-home companies have separate headquarters in different international locations, thereby attaining greater localized management, however at the better cost of forgoing the economies of scale from price sharing and centralization.
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Complete Question:
When multinational enterprises enter host countries such as Saudi Arabia and Japan, the most logical option is usually to pursue a multidomestic strategy even though that strategy rarely leads to significant cost reductions.
A. True
B. False
