An MNE in which new knowledge and capabilities are developed in both domestic and foreign locations, both independently and jointly, and then diffused throughout the worldwide organization, is following a ________ strategy.
A)transnational
B)localization
C)global
D)matrix

Question

Quizplus · Accepted Answer

A transnational strategy involves developing new knowledge and capabilities in both domestic and foreign locations and then diffusing them throughout the organization globally. This strategy emphasizes global integration and local responsiveness, making it the most appropriate choice. Localization strategy focuses on adapting products or services to meet the needs of local markets, while a global strategy emphasizes achieving economies of scale through standardization. The matrix strategy involves organizing activities around both product/market and geography, but it doesn't necessarily involve developing and diffusing knowledge and capabilities throughout the organization.

An MNE in Which New Knowledge and Capabilities Are Developed