When firms expand into global markets, they are faced with the choice of reducing costs and/or adapting to the local market. When high pressures exist to lower costs, companies should choose a(n) __________ or __________ in order to compete in the global marketplace.
A)global strategy; transnational strategy
B)global strategy: multidomestic strategy
C)international strategy; multidomestic strategy
D)international strategy; transnational strategy

Question

Quizplus · Accepted Answer

The two opposing pressures result in four different basic strategies that companies can use to compete in the global marketplace: international, global, multidomestic, and transnational. The strategy that a firm selects depends on the degree of pressure that it is facing for cost reductions and the importance of adapting to local markets. When firms are faced with high pressures to lower costs, the international strategy and the multidomestic strategy would be most appropriate.

When Firms Expand into Global Markets, They Are Faced with the Choice