What aspect of international strategy seeks to create value in foreign markets?

Transferring core competencies is key to creating value in foreign markets as it involves leveraging a company's unique strengths, resources, and capabilities that have been developed in domestic markets and applying them in international contexts. This can include proprietary technologies, brand reputation, managerial know-how, or efficient operating processes that give a company a competitive advantage. By effectively transferring these competencies, a firm can enhance its offerings in foreign markets, tailor its strategies to local demands, and ultimately drive profitability.

In contrast, standardizing product features primarily addresses uniformity rather than adapting to local preferences, which may lead to lost opportunities in diverse markets. Reducing production costs focuses on operational efficiency rather than on the strategic application of a company’s unique strengths in new environments. Lastly, focusing solely on local competitors neglects the broader competitive landscape, which includes the advantages that a company can gain by utilizing its core competencies beyond local dynamics.