Which of the following is a drawback of pursuing a transnational strategy?
A) It creates bottlenecks for global learning.
B) It exposes a firm to diseconomies of scale and location.
C) It requires a global matrix structure, which is difficult to implement.
D) It involves locating all key business activities in the home country headquarters.

Question

Quizplus · Accepted Answer

Although a transnational strategy is quite appealing, the required matrix structure is rather difficult to implement because of the organizational complexities involved. High local-responsiveness typically requires that key business functions are frequently duplicated in each host country, leading to higher costs.

Which of the Following Is a Drawback of Pursuing a Transnational