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

The right answer is option A

Explanation:

Transnational strategy can be defined as an action taken by companies to have operations in more than one country. The companies that adopts this kind of strategy usually have a central structure for the directing and coordination of the company affairs in a particular location but essentially have their operations where it is cost effective i.e. where they get maximum value for their money. The essence of transnational strategy might be to increase sales through expansion, production at a lower cost or exploiting economies of scale.

Exploits the economies of scale and learning

Explanation:

Transnational strategy differs from global strategy in that the global activities of an international company is coordinated using the concept of interdependence between its head office, other divisions, and the internationally located retail outlets. It is usually used by organizations aiming to operate at a lost cost via location economies, learning effects, and economies of scale. This strategy enhances global learning and promotes innovation and best practices.

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