A firm that has directly invested abroad and has at least one working affiliate in a foreign country (e.g., a factory, a branch office) over which it maintains effective control, is defined as a
A) multinational enterprise.
B) domestic enterprise.
C) foreign enterprise.
D) none of the above.

Question

Quizplus · Accepted Answer

A firm that has directly invested abroad and has at least one working affiliate in a foreign country is known as a multinational enterprise. This is because it operates in more than one country, with control over its foreign affiliates. A domestic enterprise operates only in its home country, while a foreign enterprise is a company that is based in a foreign country and does not necessarily have operations in its home country.

A Firm That Has Directly Invested Abroad and Has at Least