A conglomerate export its products to foreign countries, where it establishes production facilities. However, its products, procedures, unique business processes, and strategy are developed in the home country.
With regard to the Bartlett and Ghoshal’s Typology of Multinational Companies, this conglomerate is practicing a/an ——– strategy?
A . Multidomestic
B . International
C . Transnational
D . Global
Answer: B
Explanation:
International firms export their products or services to foreign countries C and are referred to as practicing an exporting strategy. The international strategy has little need for local adaptation and global integration. Products are produced in the company’s home country and sent to customers all over the world. Where there are subsidiaries (if any), these subsidiaries serve the purpose of local channels through which the products are sold to the end consumer. Large wine producers from France and Italy are good examples of companies with an international business strategy.
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