International Business: Competing in the Global Marketplace
12th Edition
ISBN: 9781259929441
Author: Charles W. L. Hill Dr, G. Tomas M. Hult
Publisher: McGraw-Hill Education
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Question
Chapter 14, Problem 1CTD
Summary Introduction
To explain: Whether the given statement is correct.
Given statement:
The strategic option for the multinational company should rely on its comparison with the advantages of the strategy with its costs of implementation. On such basis, it might be logical for few companies to pursue the localization strategy, international or global strategy, and transitional strategy.
Expert Solution & Answer
Explanation of Solution
The given statement is correct. There exists a cost-benefit trade-off with the choice of strategy. The cost of control and structure for various strategies could change widely. Transnational is often too high, at the same time, the localization is very low.
The localization strategy do not confer numerous benefits of transnational, international, or global strategy. One should not forget that the strategy should fit with the competitive environment of the company, the organizational structure, and the
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Chapter 14 Solutions
International Business: Competing in the Global Marketplace
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