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Which of the following is true of a transnational strategy?

A. Focuses solely on the domestic market
B. Centralized decision-making
C. Tailors products to local markets
D. Ignores cultural differences

1 Answer

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Final answer:

A transnational strategy involves operating in multiple countries and adapting products or services to local markets by tailoring them to suit local tastes and preferences.

Step-by-step explanation:

A transnational strategy refers to a business strategy that involves operating in multiple countries and adapting products or services to local markets. This strategy is characterized by a decentralized decision-making process, where local managers have a significant degree of autonomy in decision-making. The goal of a transnational strategy is to leverage global opportunities while also addressing local customer needs and cultural differences.

For example, a multinational corporation like Coca-Cola uses a transnational strategy by tailoring its products to suit the local tastes and preferences of different countries. In India, the company offers various regional flavors of Coca-Cola, such as Thumbs Up and Limca, to cater to the local market.

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