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Firm A, Firm B and Firm C are all multinational corporations that manufacture goods. Firm A operates in an industry where the pressure to reduce costs is high, but the pressure to be responsive to local markets is low. Firm B operates in an industry where the pressure to reduce costs is low, but the pressure to be responsive to local markets is very high. Firm C operates in an industry where both pressures are high.
(a) Give examples of 2 real-life firms that most resemble Firm A. Explain your reasons for picking these firms.
(b) Give examples of 2 real-life firms that most resemble Firm B. Explain your reasons for picking these firms.
(c) What kind of strategy should Firm C follow (standardization, international, transnational or localization)? Why?
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