Which description best defines a multinational company?
A) an organization that builds facilities within the same country to facilitate large-scale exports to various countries
B) an organization that builds facilities in a number of different countries in an effort to minimize production and distribution costs
C) an organization that sets up one or a few facilities in one or a few foreign countries
D) an organization that operates from one country and has customers from all over the globe
E) a domestic organization that chooses to locate a facility using cultural differences as an advantage

Question

Quizplus · Accepted Answer

A multinational company is an organization that builds facilities in multiple different countries in order to minimize production and distribution costs. This allows the company to take advantage of different resources, labor, and tax benefits in different countries.

Which Description Best Defines a Multinational Company