A Corporation Is Considered a Multinational ________ If ________

question 46

Multiple Choice

A corporation is considered a multinational ________ if ________.

• A) parent; it owns more than 10% of a foreign firm
• B) parent; more than 10% of its stock is held by a foreign company
• C) child; more than 10% of its stock is held by a foreign company
• D) child; more than 50% of its stock is held by a foreign company
• E) monopolist; it owns more than 50% of a foreign firm

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Definitions:

Transnational Firms

Businesses that function internationally, handling production or providing services in multiple countries.

Cultural Differences

The variety in practices, norms, and social behaviors that exist among various cultures, affecting communication, management, and interpersonal relations.

Multinational Firm

A company that operates in multiple countries, managing production or delivering services in more than one country outside of its home country.

Unique Parts

Distinctive components or aspects of a product or service that set it apart from competitors in the market.