In the context of corporate international strategies, a firm using a transnational strategy:

A) expects its expatriate managers to rely heavily on direction from the home office.
B) has centralized decision-making, with the lowest risk of agency problems.
C) can implement a knowledge contract to obtain all the information acquired by an expatriate manager.
D) faces the least number of threats for opportunistic behavior and the lowest information asymmetry.

Transnational Strategy

A global business approach used by companies to develop and distribute products or services across multiple countries while maintaining a high level of local responsiveness.

Expatriate Managers

Individuals who are temporarily transferred to manage an organization’s operations in a foreign country.

Knowledge Contract

An agreement or understanding, often informal, that dictates the sharing, use, and creation of knowledge within an organization, shaping its culture and knowledge management practices.