Describe four factors that might persuade a firm to become locally responsive in a nation where it conducts business

What will be an ideal response?

? Cater to local customer needs. Particularly in multidomestic industries, buyer needs vary from country to country. The internationalizing firm must adapt its products to meet diverse cross-national needs.
? Accommodate differences in distribution channels. Channels can vary from market to market and may increase the need for local responsiveness. In Latin America, small stores are the most common type of retailer. Foreign firms that ordinarily distribute their goods via large stores must adapt their approach when doing business there.
? Respond to local competition. Foreign firms are disadvantaged in markets that have numerous local competitors. To outdo local rivals, successful MNEs must devise offerings that best meet local demand.
? Adjust to cultural differences. Culture's influence on business activities can be substantial, depending on the market and the product. Where cultural differences are important, such as in sales of food and clothing, the firm must adapt its products and marketing activities accordingly.