Adam's Apple Corporation ships all of the apples from its orchards in Washington to a single buyer in Japan. The firm's entire profits are derived from this international transaction. Adam's Apple Corporation:
A) is an example of a multinational corporation.
B) is not a multinational corporation.
C) is contributing to the U.S. balance of trade deficit.
D) will benefit greatly from the establishment of NAFTA.

Question

Quizplus · Accepted Answer

A multinational corporation is a company that operates in multiple countries and has a global presence. Adam's Apple Corporation only ships its apples to Japan, meaning it does not operate in multiple countries and is not considered a multinational corporation. Additionally, without more information on the cost of importing and exporting the apples, it is impossible to determine whether the company is contributing to the U.S. balance of trade deficit. Lastly, the establishment of NAFTA, which is a trade agreement between the U.S., Canada, and Mexico, would not have any direct impact on Adam's Apple Corporation since it only ships to Japan.

Adam's Apple Corporation Ships All of the Apples from Its