Compared to both these approaches, the transnational approach is better as the transnational approach seeks a middle ground. In the transitional approached the firms will end up standardizing some things and in others will prefer some local approaches. This means they get the benefit of both the above discussed approached. Consider the case of fast food chains such as that of McDonald’s and Kentucky Fried Chicken (KFC). Both these restaurants ensure that there is some amount of standardization with respect to the name of the brand uses, some tastes, some forms of products made, like the double whopper in the case of McDonald’s.
However, there is also some amount of local customizations. For instance, in the case of McDonald’s in France wine would be served with the product. In the case of the double whopper, in India chicken meat would be used instead of beef. Using some of these changes makes the product more appealing for the national culture, and at the same time some elements of the product and company are kept the same which ensures standardization is also achieved.
Many global trends affect the way international strategies are chosen. For instance, consider the trend with respect to economic recessions. Economic recessions threatened countries and this would not have been the obvious time for companies to strategize. Those companies that did plan for expansions and internationalization during recession would not have been successful in internationalization. Therefore, economic recessions hence become a critical factor when exploring international strategies. Also, many corporate organizations are currently being targeted with issues of sustainability. So, sustainability related issues also have an impact on strategies. For instance, companies like Nike have come under public scrutiny and the radar of human rights advocacy groups that believe the sweatshop of culture is threatening to the people element. Some companies have come under the radar for their wastage dumps in foreign nations. These are elements that have to be considered in context by corporate strategies.
The liability in internationalization has increased. This is strongly evident in the context of the global war time attacks. Even if the internationalization strategies are successful, it would still mean issues for many companies because of the constant threat of terrorism. Some areas might not be worth the efforts of internationalization and companies have to be aware of it.
Finally, the form of political and economic agreements, such as regional economic agreements will be an important factor that will affect countries choices in international strategies. Some of these agreements are the EU, the NAFTA etc. these agreements can either be threats or opportunities for organizations planning to internationalize and hence they have to be considered in context.