a. "The choice of strategy for a multinational firm must depend on a comparison of the benefits of that strategy (in terms of value creation) with the costs of implementing it (as defined by organizational architecture necessary for implementation). On this basis, it may be logical for some firms to pursue a localization strategy, others a global or international strategy, and still others a transnational strategy." Is this statement correct? Why or why not?

Explanation:

This statement is correct because the benefits and costs of localization, global, international and transnational strategies for a multinational are different, so the choice of the best strategy must be aligned with the objectives and goals that a company intends to achieve in the market, in order to generate a cost / benefit exchange that will help the multinational to remain competitive in the world market.

It is necessary for the company to observe each different strategy from a cost and benefit perspective, in order to obtain a competitive advantage in a highly competitive market.

Therefore, the best strategy will be the one that will help the company to reduce costs and increase the local response capacity in the global market.

The local strategy, for example, can generate competitive advantage, but which will need to substantially reduce its cost structure to compete with well positioned competitors, which can generate a change that leads the company to adopt a transnational strategy.

The international strategy can only work in the short term, since in order to remain in the market in the long term, the multinational needs to adopt a global standardization and a transnational strategy in order to generate competitive advantage.

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