The drawbacks of a localized multidomestic strategy include

Multiple Choice

hindering the use of cross$-$market subsidization techniques and increasing company vulnerability to adverse shifts in currency exchange rates.

the difficulty in taking into account significant country$-$to$-$country differences in distribution channels and marketing methods.

the difficulty in and costs of being responsive to country$-$to$-$country differences in customer needs, buying habits, cultural traditions, and market conditions.

hindering transfer of a company's competencies and resources across country boundaries, and hindering the pursuit of a single, uniform competitive advantage in all country markets where a company operates.

being unsuitable for competing in the markets of emerging countries and posing added difficulty in building multiple profit sanctuaries.