Johnny Appleseed and Company ships all of the apples from its orchards in the Pacific Northwest to a single buyer in Japan. The firm's entire profits are derived from this international transaction. Johnny Appleseed and Company is
A) an example of a multinational corporation.
B) not a multinational corporation.
C) contributing to the U.S. balance of trade deficit.
D) benefitting greatly from the establishment of NAFTA.

Question

Quizplus · Accepted Answer

A company may be exporting its entire product and deriving 100 percent of its sales and profits overseas, but that alone would not make it a multinational. A multinational corporation is an organization that has manufacturing and marketing operations in many different countries. It also has multinational stock ownership and multinational management.

Johnny Appleseed and Company Ships All of the Apples from Its