Dispersing activities to many locations is competitively advantageous when Multiple Choice a multidomestic strategy is better than a global strategy. Lo o o economies of scale and scope in materials procurement, parts manufacture, finished-goods assembly, technology research, and new product development can frequently be decoupled from buyer locations and performed wherever advantage lies. host governments offer less restrictive trade barriers and regulatory requirements to companies that conform to local business practices. technical after-sale services are unimportant to buyers. high transportation costs, diseconomies of large size, and trade barriers combine to make it too expensive to operate from a central location