A company that controls finances in the home country and decentralizes production, sales, and marketing operations to other countries is using a ______ strategy.

Study for the Information Technology Applications 203C (ITA203C) FE Test. Utilize flashcards and multiple-choice questions, each with hints and explanations. Prepare effectively for your exam!

The strategy described involves a company that maintains financial control in its home country while allowing production, sales, and marketing to operate independently in various other countries. This aligns with the characteristics of a multinational strategy.

A multinational strategy enables firms to tailor their operations to suit local markets, adapting products and marketing strategies to meet specific needs of consumers in different countries. It emphasizes decentralization of operations, which is crucial for responding to diverse market conditions and competitive environments across locations. This flexibility is particularly beneficial for managing local production and sales effectively, allowing for quicker responses to market demands.

In contrast, other strategies such as domestic exporter focus primarily on production in the home country for export, while franchising involves allowing third parties to operate under a brand within specified parameters. The transnational strategy, while sharing some similarities with the multinational approach, emphasizes both global efficiency and local responsiveness, which may not be as distinctly represented in the scenario provided. Thus, the multinational strategy is the most relevant and accurate choice.

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