Final answer:
A transnational strategy involves high cost reductions and high local responsiveness, striking a balance between global efficiency and adaptation to local markets for competitive advantage.
Step-by-step explanation:
The international operations strategy that involves both high cost reductions and high local responsiveness is the transnational strategy. This approach attempts to combine global efficiency and local responsiveness to achieve competitive advantage. Unlike the international strategy, which focuses mainly on exporting products and services, and the multi domestic strategy, which prioritizes meeting local needs and preferences, the transnational strategy seeks a middle ground.
Companies adopting a transnational strategy benefit by leveraging economies of scale and scope to reduce costs, while also adapting products and processes to local markets to be more responsive to local needs. This balance is challenging to achieve but can provide substantial competitive benefits in a global marketplace.