Final answer:
Company XYZ is utilizing a Multidomestic strategy, which is characterized by the creation of autonomous subsidiaries that adapt products and strategies to local markets.
Step-by-step explanation:
Company XYZ, by creating autonomous subsidiaries in each new country it enters and allowing local managers independence in decision-making, is enlisting a Multidomestic strategy. This approach emphasizes adapting to the local environment and often involves creating separate business strategies for each country. The objective is to cater to local consumer preferences and respond effectively to the local market conditions.
A Global strategy, on the other hand, would involve a universal approach to the market with little local differentiation. A Transnational strategy would try to balance global efficiencies with local responsiveness, and Protectionism is more about a government's approach to restricting imports to protect domestic industries. An Ethnocentric strategy prioritizes the home country's culture over the local culture in business decisions.