Question

Which would be the appropriate strategy for companies to use to compete in the global marketplace if both the pressures to lower costs and adapt locally are low?
a.multidomestic strategy
b.global strategy
c.international strategy
d.transnational strategy

Answer 1

Answer:

C) international strategy

Explanation:

An international strategy is used by very specific industries which can be considered as luxury or almost luxury products, e.g. scotch whisky, french wine, etc.

International companies are mainly exporting companies, with most of the cost related activities occurring in the headquarters. Therefore this type of companies don't need to adapt locally and are not that worried about lowering costs. The main role of the subsidiaries is to channel the sales from the headquarters to the final customers.