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?© BrainMass Inc. brainmass.com October 17, 2018, 12:55 am ad1c9bdddf
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 ...
This solution discusses when a firm would use transnational, international and localization strategies in 260 words.
Exchange Rates & IMF
1. Why might the IMF be called the "lender of last resort"? What are three of the tools they use for establishing economic stability in a country?
2. Which is more conducive to international trade, the fixed or the floating exchange rate? Why?
3. Choose one of the World Bank's present projects (from the website) and tell how it will benefit international trade.
4. Country A has a stable currency and does substantial business with country B. The following is a history of recent exchange rates, given country A's rate is a constant 1:
Date Country B Exchange
April 1 240:1
May 1 255:1
June 1 310: 1
July 1 315: 1
What is happening here? How will a company in Country A purchase products from a company in Country B if it takes three months for the order to go through?
5. Explain why and how a company would shift from Localization strategy to Transnational Strategy. Give an example even if you have to make it up.View Full Posting Details