In the context of corporate international strategies, a firm using a transnational strategy:
A) expects its expatriate managers to rely heavily on direction from the home office.
B) has centralized decision-making, with the lowest risk of agency problems.
C) can implement a knowledge contract to obtain all the information acquired by an expatriate manager.
D) faces the least number of threats for opportunistic behavior and the lowest information asymmetry.

Question

Quizplus · Accepted Answer

A transnational strategy involves a firm integrating operations across different global locations, which often requires the transfer and sharing of knowledge among various units. Implementing a knowledge contract to obtain all the information acquired by an expatriate manager is a method to facilitate this knowledge sharing and integration, aligning with the characteristics of a transnational strategy.

In the Context of Corporate International Strategies, a Firm Using