Firms pursuing global standardization or transnational strategies tend to prefer setting up wholly owned marketing subsidiaries.

Question

Quizplus · Accepted Answer

This is because global standardization and transnational strategies require tight control over marketing and sales activities, which is best achieved through wholly owned subsidiaries. This allows the parent company to maintain consistent branding, messaging, and pricing across markets, as well as to coordinate marketing efforts across different regions. It also provides greater flexibility and enables the parent company to respond quickly to changing market conditions and customer needs. In contrast, joint ventures and licensing arrangements may be more appropriate for firms pursuing localization or multi-domestic strategies, which require more adaptation to local market conditions and customer preferences.

Firms Pursuing Global Standardization or Transnational Strategies Tend to Prefer