Which term describes companies that operate production or service facilities outside their home country?

• A. Franchises
• B. Multinational Corporations
• C. Domestic Firms
• D. Joint Ventures

Answer: (B)

Multinational corporations describe firms that run production or service facilities outside their home country. They own or control operations in several countries and coordinate a global network from a central headquarters. This differs from domestic firms, which operate only in their home country; joint ventures, which are temporary partnerships for specific projects; and franchises, which license a business model rather than directly owning and operating foreign facilities.