Factors that increase the degree to which an industry is multi domestic include.

  • The need for customized products to meet the tastes or preferences of local customers.
  • Fragmentation of the industry, with many competitors in each national market.
  • A lack of economies of scale in the functional activities of firms in the industry
  • Distribution channels unique to each country.
  • A low technological dependence of subsidiaries on R&D provided by the global firm.
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