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Imagine That in 2016 a U

Question 15

Multiple Choice

Imagine that in 2016 a U.S.firm acquired a plant in France.In 2017 that plant accounted for 10 percent of the U.S.firm's sales.Why is the U.S.firm NOT a multinational enterprise?


A) The U.S. firm IS a multinational enterprise because it engaged in foreign direct investment.
B) Its foreign sales took place in a different year than its foreign acquisition.
C) Because of its trade agreements with France, a U.S. firm operating there is not considered multinational.
D) Its foreign sales are less than 25 percent.

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