What best describes the scope of a Transnational Corporation?

What best describes the scope of a Transnational Corporation?

• A. A company that operates in two or more countries.
• B. A government-owned enterprise.
• C. A non-profit organization.
• D. A company that operates only in one country.

Answer: (A)

Transnational corporations are defined by their operations across borders, with production, sales, and management spread over several countries. The scope is best described as operating in two or more countries, which captures the idea of cross-border activity that characterizes these firms. The other options describe different kinds of organizations or a single-country focus, which don’t reflect the international reach of a transnational corporation.

Transnational corporations are defined by their operations across borders, with production, sales, and management spread over several countries. The scope is best described as operating in two or more countries, which captures the idea of cross-border activity that characterizes these firms. The other options describe different kinds of organizations or a single-country focus, which don’t reflect the international reach of a transnational corporation.