60. A French company was acquired by a U.S. competitor focused on global integration using a transnational strategy. Which goal is this U.S. company trying to achieve?
Answer: B
The U.S. company is trying to achieve economies of scale.
By acquiring a French company and focusing on global integration through a transnational strategy, the U.S. company aims to leverage economies of scale, which involves reducing costs and increasing efficiency by operating on a larger scale across multiple markets.
A) Product customization
Product customization refers to tailoring products to meet the specific preferences of local markets. While this can be a component of a transnational strategy, the primary goal in this scenario is not focused on customization but rather on achieving efficiencies and cost reductions through larger-scale operations.
B) Economies of scale
Economies of scale are the cost advantages that a company can achieve by increasing its level of production. This option is correct because the U.S. company is integrating globally to optimize operations and reduce costs, which is a key aspect of a transnational strategy aimed at enhancing competitiveness.
C) Localized payment methods
Localized payment methods involve adapting payment systems to suit local consumer preferences. Although this is relevant in international business operations, it does not directly relate to the primary objective of achieving efficiencies and cost reductions through economies of scale in the context of the question.
D) Decreased localized marketing
Decreased localized marketing suggests a reduction in marketing efforts tailored to local markets. However, this approach contradicts the goals of a transnational strategy, which often seeks to balance global efficiency with local responsiveness rather than diminish localized marketing efforts.
Conclusion
The focus on economies of scale is central to the U.S. company's acquisition strategy, as it seeks to enhance operational efficiency and reduce costs through global integration. In contrast, the other options either represent secondary aspects of international strategy or do not align with the main goal of leveraging a transnational approach. Therefore, option B is the definitive correct answer.