Employing a "think-local, act-local" multidomestic strategy is highly questionable when

1. the trade restrictions of host governments are diverse and complicated.
2. there are significant country-to-country differences in distribution channels and marketing methods.
3. host governments enact regulations requiring that products sold locally meet strictly defined manufacturing specifications or performance standards.
4. there are significant country-to-country differences in customer preferences and buying habits and the industry is characterized by big economies of scale and strong experience curve effects.
5. a company desires to transfer competencies and resources across country boundaries and is striving to build a single, uniform competitive advantage worldwide.