What is the common characteristic of firms classified as transnational corporations?

What is the common characteristic of firms classified as transnational corporations?

• A. They typically employ local labor only
• B. They have operations in multiple countries
• C. They are only involved in domestic sales
• D. They avoid international trade

Answer: (B)

Firms classified as transnational corporations (TNCs) are distinguished by their operations in multiple countries. This characteristic allows them to establish a global presence, accessing new markets and resources, diversifying their production strategies, and integrating various operational activities across borders. TNCs often manage a complex network of subsidiaries and operations worldwide, which enables them to leverage advantages such as lower labor costs, favorable regulatory environments, and closer proximity to customers. The ability to operate in numerous countries is fundamental to their business model and overall strategy, driving growth and efficiency through international integration.

Firms classified as transnational corporations (TNCs) are distinguished by their operations in multiple countries. This characteristic allows them to establish a global presence, accessing new markets and resources, diversifying their production strategies, and integrating various operational activities across borders. TNCs often manage a complex network of subsidiaries and operations worldwide, which enables them to leverage advantages such as lower labor costs, favorable regulatory environments, and closer proximity to customers. The ability to operate in numerous countries is fundamental to their business model and overall strategy, driving growth and efficiency through international integration.