Question

How to answer to questions below

1. describe the four most common multinational strategies corporations follow based on the pressure they encounter for cost reduction and local responsiveness

2. describe the four different types of structures corporations will have based on their multinational strategy.

3. describe the three main types of attacks corporations will engage in to increase market share.

4. describe the different types of regional economic integration.

Answer 1

1.The four common strategies MNCs follow based on the pressure for cost reduction and local responsiveness are -

• Multidomestic strategy - In this type of strategy, the company tries to cater to the needs of each local responses and hence they incorporate different approaches for each market they operate in. It adapts and customises its products in ways to fulfill the requirements of the local markets.
• Global strategy - In global strategies the company will try to produce more standardized goods worldwide. The standardization of goods will help in reducing the costs of production and help the company in achieving economies of scale.
• Transitional strategy - It incorporated both global and multi-domestic strategies. It maximises local responsiveness and produces goods at a reduced costs. It tries to achive large economies of scale while being more flexible in producing goods that best suits the local preferences.
• International strategies - It is when the companies sell their products directly or export it to different local distributors who then sells the product to different customers. It reduces cost of production as the product is being produced in the home country and does not have to incorporate local responsiveness also.