In the case global business, a ________ strategy is often used for situations in which both local responsiveness and cost reduction are needed. As per this strategy, some functions are centralized while others are decentralized at the global location best suited to achieving these objectives.
A) transnational
B) vertical integration
C) market penetration
D) product development

Question

Quizplus · Accepted Answer

A transnational strategy is characterized by a balance between local responsiveness and global integration. It involves a combination of centralization and decentralization, allowing for the best of both worlds. In this approach, companies centralize functions that benefit from economies of scale, such as production or logistics, while decentralizing functions that require local adaptation, such as marketing or customer service. This strategy helps a company achieve cost reduction and local responsiveness simultaneously, making it a popular choice in global business.

In the Case Global Business, a ________ Strategy Is Often