A multinational firm can be defined as a firm that
A)invests short-term cash inflows in more than one currency.
B)has sales affiliates in several countries.
C)is incorporated in more than one country.
D)incorporated in one country that has production and sales operations in several other countries.

Question

Quizplus · Accepted Answer

A multinational firm is incorporated in one country but has production and sales operations in several other countries. The other options do not fully capture the concept of a multinational firm. Investing in multiple currencies (A) does not necessarily make a firm multinational, and having sales affiliates in multiple countries (B) could simply suggest an international company rather than a multinational one. Incorporation in multiple countries (C) is not necessary for a firm to be multinational.

A Multinational Firm Can Be Defined as a Firm That