Final answer:
A firm that seeks to balance local responsiveness with a global presence through specialized units is called a transnational corporation. They are characterized by their global strategy and local flexibility, and their influence in the global economy is significant, as evidenced by their presence in key rankings like the Fortune Global 500.
Step-by-step explanation:
A firm that attempts to balance local responsiveness on a global scale through a network of specialized operating units is known as a transnational corporation. Unlike international, global, and multinational corporations, transnational corporations operate with a flexible approach that combines global coordination with local flexibility. This allows them to be highly responsive to the particular needs of each market they operate in, while also maintaining a cohesive corporate strategy and brand image worldwide.
Transnational corporations flourish in a new world economy characterized by the rise of entities like the WTO and regional trading blocs, which present opportunities for extending reach and influence globally. They typically have operations, such as manufacturing or service companies, in various countries and play a key role in the global economy, are subject to the local laws, and contribute to the GDP and business cycle of the countries where they have a presence.
Transnational corporations also differ from multinational corporations in that they do not merely operate in multiple nations but also attempt to optimize their operations globally without regard to national boundaries. The 2020 Fortune Magazine Global 500 list exemplifies such transnational corporations, including giants like Walmart and Sinopec Group, demonstrating their significance in the international political and economic landscape.