Future Business Leaders of America (FBLA) Business Management Practice Test

What does a multinational corporation primarily allow a company to do?

1. Expand markets and operations

2. Gain access to new markets with partners

3. Share profits from foreign businesses

4. None of the above

The correct answer is: Expand markets and operations

A multinational corporation primarily allows a company to expand markets and operations significantly beyond its home country. This expansion brings numerous benefits, including the ability to diversify product offerings and customer bases, optimize production efficiencies by tapping into different geographical advantages, and increase overall revenue potential by accessing larger and varying markets. Through this operational expansion, multinational corporations can establish subsidiaries, branches, or partnerships in multiple countries, making it easier to navigate local regulations, adapt to cultural differences, and ultimately reach a broader consumer base. This global presence helps companies leverage their core competencies and scale their operations internationally, in turn driving growth and competitiveness. While gaining access to new markets with partners, sharing profits from foreign businesses, or forming joint ventures can also be elements of multinational operations, the primary advantage lies in the broader scope of expanding markets and operations directly through the multinational corporation's activities.