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 competencies 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 fosters a flow of core competencies among different subsidiaries in the company's global network of operations. It integrates and balances the benefits of both global and multidomestic strategies, achieving high efficiencies and local responsiveness simultaneously. Therefore, it demands significant coordination and integration among subsidiaries to maximize efficiency and minimize costs.

Which of the Following Statements Is True About Transnational Strategy