Which of the Following Is a Disadvantage of a Transnational

question 72

Multiple Choice

Which of the following is a disadvantage of a transnational strategy?

• A) less ability to realize cost savings through scale economies
• B) limited ability to adapt to local markets
• C) unique managerial challenges in fostering knowledge transfer
• D) single locations may lead to higher tariffs and transportation costs

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Definitions:

Specialist

A member of a stock exchange who acts as the market maker to facilitate trading of a particular stock or securities.

NYSE Hybrid Market

A market model by the New York Stock Exchange that incorporates both electronic trading and traditional floor trading to execute orders.

Dealer Market

A financial market mechanism wherein buy and sell transactions are made through a dealer, or market maker, rather than through a centralized exchange.

Auction Market

A marketplace where buyers and sellers enter competitive bids simultaneously, with the price determined through the interaction of these bids.