The CEO of Informatix Co.,suggested to the board of directors that if the firm was going to adopt a transnational strategy,rather than having treasury operations situated in the headquarters,the company should relocate this operation to London in order to enhance access to financial markets.Consequently,the treasury operations would still be centralized,but situated in a different location.Flexible specialization,or excentralization,is an important attribute of firms that adopt a transnational strategy.

Question

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With flexible specialization,transnational companies enjoy the complementary benefits of scale economies with flexibility of accessing low input costs or scarce resources.