Which international business strategy involves adapting to local markets while leveraging global efficiencies?

The transnational strategy is designed to balance the need for local responsiveness with the desire for global efficiencies. Companies employing this strategy recognize that while they need to adapt their products, services, and operations to meet local market preferences and demands, they also wish to take advantage of the cost efficiencies and scalability that come from operating on a global scale.

For instance, a business might design its products to cater to local tastes and preferences while simultaneously using global procurement systems to reduce costs. This dual focus enables companies to compete effectively both in individual markets and globally. By doing so, a transnational strategy allows firms to maximize their competitive advantage across different regions, making it a versatile and effective approach in international business.