Fragra Inc., a company that manufactures and sells premium perfumes, is pursuing aninternational strategy. SaveMart Inc., a supermarket chain, follows a multidomestic strategy.Which of the following statements is most likely true of this scenario?A. Fragra Inc. will sell the same products and services in both domestic and foreign markets, whereas SaveMarket Inc. will customize its product offerings to suit local requirements.B. Fragra Inc. will pursue a differentiation strategy at the business level, whereas SaveMarket Inc. will pursue a cost-leadership strategy at the business level.C. Fragra Inc. will be better protected from exchange rate fluctuations when compared to SaveMarket Inc.D. Fragra Inc. will not be able to leverage its home-based core competencies in foreign markets as much as SaveMarket Inc.A. Fragra Inc. will sell the same products and services in both domestic and foreign markets, whereas SaveMarket Inc. will customize its product offerings to suit local requirements.Answer:A. Fragra Inc. will sell the same products and services in both domestic and foreign markets,whereas SaveMarket Inc. will customize its product offerings to suit local requirements. An international strategy is essentially a strategy in which a company sells the same products or services in both domestic and foreign markets. Firms pursuing a multidomestic strategy attempt to maximize local responsiveness, hoping that local consumers will perceive them to be domestic companies.
