Final answer:
No, the statement is false. Firms with an ethnocentric orientation are guided by the global market standardization concept, not the multi-domestic market extension concept.
Step-by-step explanation:
No, the statement is false. Firms with an ethnocentric orientation are guided by the global market standardization concept, not the multi-domestic market extension concept.
An ethnocentric orientation is when a firm views its home country's products, services, and management practices as superior and applies them in their international operations. In contrast, the multi-domestic market extension concept focuses on adapting products, services, and management practices to meet the specific needs of each local market.
For example, if a firm with an ethnocentric orientation operates in multiple countries, it is more likely to promote standardization, whereby the firm implements consistent strategies and products across different markets. On the other hand, a firm with a multi-domestic market extension orientation would prioritize customization, tailoring products and strategies to suit the unique preferences and requirements of each local market.