Question

When firms expand into global markets, they are faced with the choice of reducing costs and/or adapting to the local market. When high pressures exist to lower costs, companies should choose a __________ or __________ in order to compete in the global marketplace.

Answer 1

Global strategy, Transnational strategy

Explanation:

Global strategy:

The global strategy is opposite to the multi-domestic strategy Some minor changes occur in the products and services in the market but the main purpose of global strategy is to gain the economics by providing the essentials of these same products.

Transnational strategy:

It is the middle ground between global strategies and multi-domestic strategy. These strategies make a balance between the desire for efficiency in the needs of the local areas within the countries.