Which term describes a firm that operates research, manufacturing, and sales activities across multiple countries?

• A. Multinational Corporation
• B. Global Firm
• C. Transnational Corporation
• D. International Enterprise

Answer: (C)

The main idea is how firms organize research, production, and sales across borders to tap global opportunities. A firm that coordinates R&D, manufacturing, and marketing in several countries creates a globally distributed network that treats the world as a single, interconnected marketplace. Decisions about where to research, where to build plants, and where to sell are integrated across borders rather than centered in one home country. This cross-border integration, optimization of the whole value chain, and reliance on dispersed capabilities define a transnational corporation.

A multinational corporation shares many features, but it’s often seen as being more home-country–centered with subsidiaries abroad, rather than truly integrated across the globe. A global firm emphasizes standardized products and processes on a worldwide scale, sometimes at the expense of local adaptation. An international enterprise is typically more limited in its cross-border integration, often exporting or licensing rather than operating a fully interconnected, worldwide network. So the description most accurately matches a transnational corporation.