A firm becomes a multinational enterprise when

Question

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A multinational enterprise is defined as a company that operates in multiple countries. The most common way for a company to become a multinational enterprise is through foreign direct investment (FDI), which involves the firm establishing operational facilities or acquiring ownership or control of a foreign business. Listing its stock on a foreign stock exchange or engaging in foreign portfolio investment (FPI) do not necessarily make a firm a multinational enterprise, as these actions focus on financial investments rather than operational activities in multiple countries.

A Firm Becomes a Multinational Enterprise When