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WGU Global Economics for Managers Exam - Topic 3 Question 6 Discussion

Which strategy for responding to multinational enterprises is appropriate in a situation in which there is low industry pressure to globalize and competitive assets are customized to home markets?
C) Defender strategy
A) Contender strategy
B) Retainer strategy
D) Responder strategy

WGU Global Economics for Managers Exam - Topic 3 Question 6 Discussion

Actual exam question for WGU's Global Economics for Managers exam
Question #: 6
Topic #: 3
[All Global Economics for Managers Questions]

Which strategy for responding to multinational enterprises is appropriate in a situation in which there is low industry pressure to globalize and competitive assets are customized to home markets?

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Suggested Answer: C

The defender strategy is appropriate when industry pressure to globalize is low and the firm's competitive assets are customized to the home market. In this situation, the firm does not face strong pressure to expand globally, and its strengths are mainly local, such as domestic customer relationships, local distribution knowledge, local brand reputation, or familiarity with national regulations. Option C is correct because a defender focuses on protecting its home-market position by exploiting local advantages that multinational enterprises may find difficult to copy. A contender strategy fits high globalization pressure with home-market-customized assets. An extender strategy would involve using transferable capabilities abroad, and a dodger strategy usually involves cooperating with or selling to multinational firms when pressure is high and assets are weak. Therefore, defender is the correct response.

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Catarina
7 hours ago
This question seems similar to one we practiced about market customization. I feel like the Contender strategy could be relevant too, but I'm not confident.
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Chaya
5 days ago
I'm not entirely sure, but I remember something about the Defender strategy being used when there's less pressure to globalize.
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Nicolette
11 days ago
I think the Retainer strategy might be the right choice since it focuses on maintaining a strong position in the home market.
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Mindy
16 days ago
I could be wrong, but I think the Responder strategy is more about reacting to changes rather than focusing on home market customization.
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Mabelle
2 months ago
I practiced a similar question, and I feel like the Contender strategy is more about aggressive expansion, which doesn't fit here.
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Marilynn
2 months ago
I'm not entirely sure, but I remember something about the Defender strategy being used when there's low pressure to globalize.
upvoted 0 times
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Olive
2 months ago
I think the Retainer strategy might be the right choice since it focuses on maintaining a strong position in the home market.
upvoted 0 times
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