Which of the following is true of a transnational strategy?
A)It is easy to implement because it does not place any conflicting demands on a company.
B)It is used when the pressures for cost reductions are low.
C)It is usually used when the pressure for local responsiveness is relatively low.
D)It enables the one-way flow of core competencies.
E)It is used by firms that try to achieve low costs through location economies,economies of scale,and learning effects.

Question

Quizplus · Accepted Answer

A transnational strategy is used by firms that try to achieve low costs through location economies, economies of scale, and learning effects. This strategy requires a balance between global integration and local responsiveness, making it more complex and challenging to implement than other strategies. It also involves a two-way flow of core competencies, with the ability to transfer knowledge and skills across borders in both directions. Therefore, option E is the correct choice. Option A, B, and C are incorrect because they make inaccurate claims about a transnational strategy. Option D is incorrect because a transnational strategy enables a two-way flow of core competencies.

Which of the Following Is True of a Transnational Strategy