) Two major drawbacks of a think local, act local multidomestic strategy are A. D) greater exposure to both increases in tariffs and restrictive trade barriers, and added difficulty in accommodating the diverse trade restrictions and regulatory requirements of host governments. B. E) not being able to export products manufactured in one country to markets in other countries and being largely unsuitable for competing in the markets of emerging countries. C. C) hindering a company's transfer of competencies and resources across country boundaries (since somewhat different competencies and capabilities are likely to be employed in different host countries) and not promoting the building of a single, unified competitive advantage in all country markets where a company competes. D. B) excessive vulnerability to fluctuating exchange rates and having to craft a separate strategy for each country market in which the company competes. E. A) that it is especially vulnerable to fluctuating exchange rates and can usually be defeated by companies employing cross-market subsidization tactics.