In a transnational industry,MNEs are expected to
A) collaborate with their competitors to increase the prices of their products.
B) build the capability to learn from the many environments in which they operate.
C) acquire their competitors to increase their pool of resources.
D) decentralize decisions to better respond to local demands.

Question

Quizplus · Accepted Answer

In a transnational industry, MNEs are expected to build the capability to learn from the many environments in which they operate. This means that they should adapt to the local market conditions, cultural differences, and regulatory frameworks. By doing so, MNEs can improve their operations and competitiveness in different regions. Collaboration with competitors is illegal and undermines the principles of fair competition. Acquiring competitors may lead to anti-trust issues and may not always increase the pool of resources. Decentralization of decisions is only beneficial when there is a need for local responsiveness, but it does not guarantee the capability to learn from different environments.

In a Transnational Industry,MNEs Are Expected to