Which term refers to a firm that has its headquarters in one country but operates in several other countries?

Which term refers to a firm that has its headquarters in one country but operates in several other countries?

• A. Indigenous firm
• B. Domestic company
• C. A transnational (multinational) company
• D. Franchise

Answer: (C)

When a firm keeps its headquarters in one country but runs operations in several others, it is operating as a multinational (or transnational) company. This describes a business that owns or controls activities abroad—such as factories, offices, or distribution networks—while coordinating its strategy from its home base. The key idea is that the company is truly active in multiple countries beyond its origin, not confined to its domestic market, and it often adapts some products or practices to fit local conditions. Indigenous firms are rooted in a single local market. Domestic companies operate only within their home country. A franchise uses a licensing model where independent operators run outlets under the brand, which can spread internationally, but the parent company’s ownership and management focus differ from a multinational’s integrated, owned foreign operations.

When a firm keeps its headquarters in one country but runs operations in several others, it is operating as a multinational (or transnational) company. This describes a business that owns or controls activities abroad—such as factories, offices, or distribution networks—while coordinating its strategy from its home base. The key idea is that the company is truly active in multiple countries beyond its origin, not confined to its domestic market, and it often adapts some products or practices to fit local conditions.

Indigenous firms are rooted in a single local market. Domestic companies operate only within their home country. A franchise uses a licensing model where independent operators run outlets under the brand, which can spread internationally, but the parent company’s ownership and management focus differ from a multinational’s integrated, owned foreign operations.