Which statement about multinational companies is true?

Which statement about multinational companies is true?

• A. They operate only in their home country
• B. They produce in more than one country
• C. They never invest in foreign markets
• D. They are always state-owned

Answer: (B)

A multinational company operates in more than one country, setting up production, sales, or services abroad to access new markets, resources, or cheaper inputs. This is why the statement about producing in more than one country is true: such firms extend their operations beyond their home market, often through subsidiaries or foreign factories, to become truly global players. The other ideas don’t fit because a multinational is not restricted to its home country, it typically engages in foreign investment rather than avoiding it, and it isn’t necessarily owned by the state—many multinationals are private or publicly owned.

A multinational company operates in more than one country, setting up production, sales, or services abroad to access new markets, resources, or cheaper inputs. This is why the statement about producing in more than one country is true: such firms extend their operations beyond their home market, often through subsidiaries or foreign factories, to become truly global players. The other ideas don’t fit because a multinational is not restricted to its home country, it typically engages in foreign investment rather than avoiding it, and it isn’t necessarily owned by the state—many multinationals are private or publicly owned.