What type of systems configuration do transnational companies typically use?

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!

Transnational companies usually adopt a networked systems configuration because this approach allows for both global integration and local responsiveness. A networked configuration helps organizations to function effectively across different countries by facilitating communication and collaboration among various regional operations. This structure enables the sharing of resources, information, and best practices across borders while maintaining enough autonomy for local subsidiaries to adapt to their specific market needs.

In a networked system, interconnectedness between different locations fosters a cooperative environment where regions can leverage their strengths and knowledge to achieve overall corporate objectives. This configuration is essential for transnational companies that must balance a unified corporate strategy with the ability to respond swiftly to local market dynamics.

The other configurations, such as centralized, decentralized, and duplication, do not encapsulate the dual demands of a transnational strategy as well as a networked system does. Centralized configurations might limit local adaptation, decentralized might create silos, and duplication can lead to inefficiencies by replicating efforts in different regions. Thus, the networked configuration is the most fitting choice for transnational companies.

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