Final answer:
The multidomestic OM strategy is focused on local responsiveness and usually incurs higher costs due to the lack of standardization and economies of scale. Hence, the statement is False since this strategy does not typically achieve a significant cost advantage. Therefore, the correct option is 2.
Step-by-step explanation:
The statement that the multidomestic OM strategy (Operations Management strategy) maximizes local responsiveness while achieving a significant cost advantage is False. The multidomestic strategy is focused on maximizing a company's ability to respond locally by customizing its products and services to fit local markets, but this often comes with higher costs due to the need for multiple production facilities, customized product designs, and diverse marketing strategies. The emphasis on localization typically leads to less standardization and, as a result, the loss of cost efficiencies that would be derived from economies of scale and centralized operations.
It's important to recognize that operational strategies like multidomestic involve trade-offs. While a company may pursue other strategies, such as a global or transnational strategy, to achieve economies of scale, the multidomestic approach creates value by being closely aligned with the specific tastes and preferences of each local market.