Since efficiency,flexibility and learning are conflicting goals,a transnational company should focus on only one of these goals and try to exploit it through the three sources of worldwide competitive advantage - national differences in both input and output markets,scale economies and scope economies.

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The main distinction of a transnational company to international,multinational,or global companies is its strategic orientation of developing global efficiency,flexibility,and worldwide learning simultaneously,as opposed to focusing on only one of them.This will help the transnational management company to protect and enhance the particular strength it has while simultaneously building the other capabilities.

Since Efficiency,flexibility and Learning Are Conflicting Goals,a Transnational Company Should