Companies that expand abroad in order to take advantage of inexpensive labor costs cannot be considered as multinational corporations.

Question

Quizplus · Accepted Answer

Companies that expand abroad to take advantage of labor costs can still be considered multinational corporations as they have operations in multiple countries. The use of cheap labor may be a strategy for the company to increase profits, but it does not determine its status as a multinational corporation.

Companies That Expand Abroad in Order to Take Advantage of Inexpensive