Which of the following statements is true about transnational strategy?
A) It gives little emphasis to cost reduction and achieving scale economies.
B) It makes little sense when the pressures for local responsiveness are intense.
C) It is an easy one to pursue because it places minimal demands on the company.
D) It fosters a flow of resources such as process knowledge between different subsidiaries in the company's global network of operations.
E) It is adopted by companies that produce standardized goods that do not require product differentiation.

Question

Quizplus · Accepted Answer

Transnational strategy facilitates the flow of resources such as process knowledge between different subsidiaries in the company's global network of operations. It is not an easy strategy to pursue and requires balancing global integration with local responsiveness. It also focuses on cost reduction and achieving scale economies while simultaneously adapting products and services to local markets. Therefore, option D is the correct answer.

Which of the Following Statements Is True About Transnational Strategy