Which of the following best describes how the transnational strategy uniquely differs in regard to its communication relationship between home country and foreign market?
A) The home country has one-way communication with the foreign market, providing innovation and direction to it.
B) The subsidiaries in the home country and foreign country do not communicate.
C) It seeks to eventually allow the foreign subsidiary to be autonomous, so communication is one-sided.
D) Innovations not only flow from the home country to host countries, but also flow from host countries to the home country and flow among subsidiaries in multiple host countries.

Question

Quizplus · Accepted Answer

The transnational strategy is unique in that it allows innovations to flow not only from the home country to host countries but also from host countries to the home country and among subsidiaries in multiple host countries. This means that communication is not one-sided and must be two-way to allow for innovation and direction to come from all parts of the organization. The transnational strategy emphasizes open communication among subsidiaries in multiple host countries as well as between the home country and foreign subsidiaries. This allows for the exchange of innovations and ideas in both directions. The goal is to eventually create an integrated global network, rather than merely providing one-sided direction from the home country to the foreign market.

Which of the Following Best Describes How the Transnational Strategy