Question

Florence is an expatriate manager for a multinational corporation. Her managers expect her to act independently and acquire specialized knowledge and transfer it to her subordinates. The only issue she faces is being unable to get the local employees to go along with her ideas. As a result, there is a high risk of agency problem. In the context of the four international strategies proposed by Bartlett and Goshal, Florence is working with a company that uses the _____.

Answer 1

Answer: Florence is working with a company that uses the transnational strategy.

Explanation:

Definition: A transnational strategy refers to a strategy with planned actions that a company has put in place inorder to start an operation in abroad markets. They function in foreign countries but still keep their core business in one particular location.

This strategy uses the great benefits of operating in different locations which may increase sales. The central office manages the other branches which are spread into other countries.