A firm that operates manufacturing plants in several countries is known as a

A firm that operates manufacturing plants in several countries is known as a

• A. Domestic firm
• B. Multinational Company
• C. State-owned enterprise
• D. Sole trader

Answer: (B)

Having manufacturing plants in several countries describes a business with production across borders, which is the hallmark of a multinational company. These firms operate and coordinate activities in more than one nation, often to access different markets, sources, and labor pools, and to spread risk. A domestic firm, in contrast, operates only within one country and doesn’t have overseas plants. A state-owned enterprise is owned by the government, which is a different feature from operating internationally. A sole trader is a business owned by a single person and typically operates locally, not with multiple international plants.

Having manufacturing plants in several countries describes a business with production across borders, which is the hallmark of a multinational company. These firms operate and coordinate activities in more than one nation, often to access different markets, sources, and labor pools, and to spread risk.

A domestic firm, in contrast, operates only within one country and doesn’t have overseas plants. A state-owned enterprise is owned by the government, which is a different feature from operating internationally. A sole trader is a business owned by a single person and typically operates locally, not with multiple international plants.