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Transnational and Localization Strategies

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When would a firm choose to operate on a transnational basis? Under what circumstances would a firm use a localization strategy? When would an international strategy be employed?

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This solution discusses when a firm would use transnational, international and localization strategies in 260 words.

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When would a firm choose to operate on a transnational basis?

A firm would choose to operate on a transnational basis if they were in an industry where the market was oligopolistic. With a very limited number of players in the market, the capital investment is worthwhile in the short and long run. If the cost of entry is high to new entrants, this is also a factor of desirability in determining whether to go ...

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