Unlike firms that are in the second stage of global business,third-stage multinational companies:
A)sell products only in one country.
B)have their top executives and core corporate functions in different countries.
C)operate an entire line of business in another country.
D)set up foreign subsidiaries to handle sales in one country.

Question

Unlike firms that are in the second stage of global business,third-stage multinational companies:
A)​sell products only in one country.
B)have their top executives and core corporate functions in different countries.
C)operate an entire line of business in another country.
D)​set up foreign subsidiaries to handle sales in one country.

Quizplus · Accepted Answer

Third-stage multinational companies operate an entire line of business in another country, which means they have established a significant presence and infrastructure in that country. This is a step beyond simply setting up foreign subsidiaries to handle sales in one country, which is more typical of second-stage companies. The other answer choices are not accurate for third-stage multinationals.

Unlike Firms That Are in the Second Stage of Global