Which of the following statements is true about transnational strategy?
A)It gives little emphasis to cost reduction and achieving scale economies.
B)It makes little sense when the pressures for local responsiveness are intense.
C)It is an easy one to pursue because it places minimal demands on the company.
D)It fosters a flow of skills between different subsidiaries in the company's global network of operations.
E)It is adopted by companies that produce standardized goods that do not require product differentiation.

Question

Quizplus · Accepted Answer

Transnational strategy fosters a flow of skills and knowledge between subsidiaries in the company's global network of operations, making it easier to adapt to varying local conditions while still achieving scale economies and reducing costs where possible. This requires close coordination and communication between subsidiaries, as well as a focus on developing and sharing best practices and innovations. Transnational strategy is therefore more complex and demanding than other strategies, but can yield significant benefits in terms of global competitiveness and adaptability.

Which of the Following Statements Is True About Transnational Strategy