Question

Which of the following is a disadvantage of a transnational strategy? Group of answer choices Less ability to realize cost savings through scale economies. Limited ability to adapt to local markets. Unique managerial challenges in fostering knowledge transfer. Single locations may lead to higher tariffs and transportation costs.

Answer 1

The answer is: Limited ability to adapt to local markets.

Step-by-step explanation:

One of the most important disadvantages of transnational strategy is that it is really difficult to fully understand the different markets in which the company wants to operate. People's culture, taste, purchasing power, etc., vary from one state to another (sometimes even from one neighborhood to another), imagine how different they are from one country or continent to another. Imagine just how many things Chinese and American customers don't have in common.