In the context of international business, what term best describes a strategy that integrates local resources and knowledge?

The term that best describes a strategy integrating local resources and knowledge is known as a polycentric strategy. This approach emphasizes the importance of local customs, practices, and market conditions in decision-making processes, allowing firms to tailor their products and marketing strategies to fit the unique needs and preferences of each market they operate in.

By utilizing local resources and knowledge, businesses can respond effectively to the cultural, economic, and competitive environments of the countries in which they are doing business. A polycentric approach allows for a greater degree of adaptation and responsiveness, potentially leading to more successful outcomes in diverse markets.

In contrast, an ethnocentric strategy focuses on the home country’s culture and practices, often imposing these on foreign markets without significant adaptation. A global strategy seeks to standardize products and marketing efforts across markets, minimizing local adaptations. A geocentric strategy, meanwhile, attempts to integrate and balance the best practices from both home and host countries but does not specifically emphasize local resources to the same extent as a polycentric strategy.