Which of the following is true of a transnational strategy? A. Uses licensing extensively outside of the "home" country B. Uses standardized products C. Uses domestic model globally D. Exploits the economies of scale and learning

Question

Business

Giovanna Cruz

15 September, 19:59

Which of the following is true of a transnational strategy? A. Uses licensing extensively outside of the "home" country B. Uses standardized products C. Uses domestic model globally D. Exploits the economies of scale and learning

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Answers (1)

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Matteo Decker · Answer 1

The correct answer is letter "D": Exploits the economies of scale and learning.

Explanation:

Transnational strategies imply companies taking their products to different regions in the world and adapting them to each market. It is the opposite of the global strategy of entering a market by which a corporation offers the same product over all the territories where it handles operations.

One of the main objectives of the transnational strategy is to lower production costs by using economies of scale, meaning production becomes more efficient providing manufacturers cost advantages. Besides, the company looks for learning diverse domestic strategies that can also be implemented in other regions keeping in mind each of them would have its own features.