Final answer:
The transnational model enables managers to balance the integration of global efficiency with the need for local responsiveness and know-how transfer, exemplifying a business strategy that considers economic and environmental factors.
Step-by-step explanation:
The business model that allows managers to "think globally but act locally," and which aims to achieve local responsiveness, the transfer of know-how, and cost economies simultaneously, is known as the transnational model. This model integrates the idea of applying the Economic Way of Thinking to address global challenges such as global warming and biodiversity, while considering the tradeoffs between economic output and environmental protection.
Intra-industry trade illustrates that worker productivity is not solely determined by climate or geography, but by the firm's ability to specialize and benefit from economies of scale, leading to a dynamic comparative advantage. Managers are encouraged to adapt to the specificity of local markets, while simultaneously capitalizing on global efficiency and shared knowledge.