Question 60

The U.S. company is trying to achieve economies of scale.

By acquiring a French company, the U.S. competitor aims to leverage economies of scale, which allows them to reduce costs and increase efficiency through larger production volumes and integrated operations across global markets.

A) Product customization

While product customization is a strategy used to cater to local markets, it is not the primary goal of a transnational strategy focused on global integration. The U.S. company is more concerned with optimizing operations and reducing costs rather than solely tailoring products for specific local preferences.

B) Economies of scale

This option correctly identifies the goal of the U.S. company. By integrating operations and resources from the acquired French company, the U.S. competitor can achieve significant cost savings and efficiency gains, which are hallmarks of economies of scale.

C) Localized payment methods

Localized payment methods are important for facilitating transactions in different markets, but they do not represent the overarching goal of achieving efficiency and cost reduction through global integration. This option does not align with the strategic focus of a transnational approach.

D) Decreased localized marketing

Decreased localized marketing would contradict the objectives of a transnational strategy, which often requires some level of localized marketing to effectively reach diverse markets. Thus, this option is not relevant to the stated goal of the U.S. company.

Conclusion

The U.S. company's focus on achieving economies of scale through the acquisition reflects its strategic intent to enhance efficiency and reduce costs on a global level. Other options, while related to market operations, do not capture the essence of the integration strategy being pursued. Therefore, option B stands out as the most accurate representation of the company's goal.