A firm pursuing a transnational strategy would believe that
A) key business functions should be located in its home country headquarters.
B) local-responsiveness is more important than cost-reductions for competitive advantage.
C) best practices, ideas, and innovations should be diffused throughout the world.
D) the majority of the value creation should take place in the home country.

Question

Quizplus · Accepted Answer

Multinational enterprises typically implement a transnational strategy through a global matrix structure. That structure combines economies of scale along specific product divisions with economies of learning attainable in specific geographic regions. The idea is that best practices, ideas, and innovations will be diffused throughout the world, regardless of their origination.

A Firm Pursuing a Transnational Strategy Would Believe That