A localized or multidomestic strategy has two big drawbacks: (1) it hinders transfer of a company's competencies and resources across country boundaries because the strategies in different host countries can be grounded in varying competencies and capabilities; and (2) it does not promote building a single, unified competitive advantage, especially one based on low cost. involves much less adherence to using the same basic competitive strategy theme (low-cost, differentiation, best-cost, or focused) in all country markets. is generally preferable to a global strategy in situations where buyers are price sensitive because a "thinklocal, act-local" type of multidomestic strategy is better suited to achieving low unit costs than a global strategy. is generally best suited for globally standardized industries, in which small country-by-country differences can be accommodated