Question

The weaknesses of a multi-country strategy are that

A. It is especially vulnerable to fluctuating exchange rates and it can usually be defeated by companies employing cross-market subsidization tactics.
B. Each country’s strategy is different from the strategies employed in other countries and it is harder to build multiple profit sanctuaries.
C. It presents a firm with greater exposure to increases in tariffs and restrictive trade barriers than does a global strategy.
D. It is less conducive to building competitive advantage by transferring company competencies and resources across country boundaries and it does not promote building a single, unified competitive advantage.
E. It is unsuitable for the markets of emerging countries and it can usually be defeated by companies using export strategies or global strategies.

Answer 1

Answer: D. It is less conducive to building competitive advantage by transferring company competencies and resources across country boundaries and it does not promote building a single, unified competitive advantage.

Step-by-step explanation:

Multi-Country Strategy is a strategy whereby there is matching of each country market and the circumstances in the local market. Multicountry strategies differ in terms of mission achievement, brand presentation etc

One weakness of the strategy is that it is less conducive to building competitive advantage by transferring company competencies and resources across country boundaries and it does not promote building a single, unified competitive advantage.