A major U.S automaker has plants all over the world. It continues to shift its production from the United States, where labor unions demand high wages for their members, to facilities in Mexico and China, where the wages are substantially lower. The company minimizes distribution and labor costs by locating facilities in central and eastern European countries such as Poland and Hungary for manufacturing and assembling automobiles to sell in the European market. This company is an example of a(n)_____.

Question

Quizplus · Accepted Answer

International companies become multinational when they build facilities in a number of different countries, attempting to capitalize on lower production and distribution costs in different locations.

A Major US Automaker Has Plants All Over the World