What is a example of a firm that uses standardization vs. multi-domestic strateg

Question

What is a example of a firm that uses standardization vs. multi-domestic strategy? You may choose a company that makes a standardized product and sell it in various countries and also sells some products that it customizes depending on specific socio-cultural, economic variables of different countries. What is the effect of increasing tariff on US economy that president trump is advocating for ? What is a example of a firm that uses standardization vs. multi-domestic strategy? You may choose a company that makes a standardized product and sell it in various countries and also sells some products that it customizes depending on specific socio-cultural, economic variables of different countries. What is the effect of increasing tariff on US economy that president trump is advocating for ?

Explanation / Answer

A firm that uses standardization policy, provides same kind of the product in every market in which it operates. Examples:

On the other hand a firm that uses multi-domestic strategy delegates the operations in every market it works in, each delegated unit behaves differently depending on the region it operates in, also it provides different products in different markets. Examples:

Now take McDonalds for example, its menu differs in different markets depending on the various socio -cultural, economic variables; Like beef burgers are not served in McDonalds in India due to some cultural variables. Here we can see that McDonalds is using a multi-domestic strategy. On the other hand it also produces fries which is standardized in all the markets in which it operates which displays the use of standardization strategy.

Another example for the same can be Coca Cola which sells its signature drink in all markets in which it operates using standardization strategy and also it has many variants of its signature drinks which it sells in the markets according to its socio-cultural and economic variables, like coke zero for a market with more health concerned consumers using the multi-domestic strategy.

United States has largely been a free trade economy but the recent hike in tariffs due to president Trumps's call with Mexico, China and other trading partners has lead to a conflict and may lead to a trade war. A tariff is an instrument to control the import and exports of goods, an change in tariffs can affect both the importer and the exporter. If the tariff in a country are increased the imprted goods become more expensive as compared to the domestic goods and demand for the imported goods fall leading the a loss for the exporter and may distrupt the international trade for the country.

The revenue generated from increase in tariffs may not be able to offset the losses generated by such increase in tariffs. With a reduction in the international trade the GDP gets affected and falls which further leads to increased unemployment. At last it deteriorates the relationship between countries which itslef comes with many disadvantages.

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