Which of the following strategies focuses on transferring valuable skills between subsidiaries?

The transnational strategy is focused on integrating global efficiencies with local responsiveness. This strategy recognizes that to remain competitive in various markets, companies must leverage their valuable skills and capabilities across different subsidiaries. By transferring knowledge, expertise, and best practices from one subsidiary to another, firms can enhance their overall performance and innovation.

This approach allows subsidiaries to adapt to local market conditions while still benefiting from the efficiencies that come from sharing resources and capabilities across the organization. It is particularly relevant in industries where technological advancements and competitive landscapes change rapidly, requiring firms to be agile and responsive while still achieving cost efficiencies.

In contrast, the other strategies focus on different aspects of international business. The global standardization strategy emphasizes uniformity across markets, aiming for cost leadership and economies of scale without as much emphasis on local adaptation. The international strategy generally involves exporting products with little modification, often not addressing local market needs as thoroughly. Finally, the localization strategy centers on tailoring products and services specifically to meet the unique demands of local markets, which may not place as much emphasis on transferring skills among subsidiaries.