A multinational company produces its goods domestically and then sells them overseas.Group of answer choicesTrueFalse
Question
A multinational company produces its goods domestically and then sells them overseas.
Group of answer choices
- True
- False
Solution
The statement indicates that a multinational company manufactures products within its home country and subsequently sells them in international markets.
Essentially, multinationals operate across borders, engaging in production and sales activities in multiple countries. This means they can manufacture goods in their country of origin and export them abroad or set up production facilities in different countries to cater to local markets.
Therefore, while the domestic production and overseas sales model is a common operational strategy for multinationals, it is not an exclusive characteristic of all multinational companies, as they may choose to manufacture goods overseas depending on market demands, cost considerations, and logistical factors.
Answer: True - Multinational companies can produce goods domestically and sell them overseas, although they may also produce abroad.
Similar Questions
A company with operations in more than one countryGroup of answer choicesCorporationGlobalizationTransnational corporationSupply chain
The method of involves the use of independent distributors or a company’s own overseas sales office in conducting international business.
In international business, involves having a foreign purchaser in the local market or using an export management firm.
The MNC not only sell its finished products globally but, more importantly, the goods and services are produced globally. State whether true or false.
Intra-industry trade occurs when a country tends to export one good and imports a wholly different type of good from another country.A. TrueB. False
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.