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. T/F

Answer 1

Answer:

True

Explanation:

When multinational enterprises enter the host countries they usually prefer pursuing multidomestic strategy  even though such a strategy rarely leads to reduced costs then too the multinational enterprises opts for such a strategy.

A multidomestic strategy is one in which the multinational companies adopts marketing approach rather than a universal or global approach. under such a strategy the multinationals studies deep about the individual market as well as the customers and prefers catering to the needs of the customers. Even though such a strategy leads to higher costs or may be no reduced costs as it has to appoint experts for the deep market and customer choice study .