Fun Foods Inc. is a snack manufacturer that wants to expand globally. Few people abroad are familiar with Fun Foods snacks. The countries into which the company wants to expand require a high degree of local responsiveness when it comes to food, and the citizens of those countries already spend plenty of money on snacks. Which action should the leaders of Fun Foods take?

Answer: Create a new domestic product for their new market.

Explanation:

In order for Fun Food Inc to break into the new country market they need to form a new product that would seem domestic to the consumers in the new country they intend to sell to. This new product would attract the consumers attention in that country as it would act as alternative to the other snacks that they are used to consuming.

Pursue a multidomestic strategy that includes new "local" brands.

Explanation:

A multidomestic marketing strategy refers to an international strategy that focuses marketing efforts on combining both international brands with local brands or products. For example McDonald's offers several regional products that are not found in the US like McAloo Tikki (India), Chicken Singaporridge (Singapore), McArabia (middle east), etc.

This way local customers will not perceive foreign brands as distant, and many times appreciate the local flavor.