Final answer:
The transnational model is the strategy that leverages thinking globally and acting locally, balancing local responsiveness with global integration and optimizing trade-offs to manage international operations effectively.
Step-by-step explanation:
The model that allows managers to 'think globally but act locally,' while pursuing local responsiveness, transfer of know-how, and cost economies simultaneously is known as the transnational model. This model recognizes that companies must be able to adapt their strategies and operations to the local contexts in which they operate, while also integrating and coordinating activities on a global scale.
In managing international operations, firms must consider various factors such as differences in cultures, market conditions, and legal environments. This often requires a decentralized approach to decision-making to allow for a greater degree of local responsiveness. At the same time, knowledge and best practices are shared across the organization, and resources are allocated in a manner that takes advantage of economies of scale and global branding.