What characterizes multinational corporations (MNCs)?

The correct answer indicates that multinational corporations (MNCs) are characterized by their operations in multiple countries and the presence of facilities and offices around the world. This definition is key to understanding the nature of MNCs. They are typically large enterprises that manage production or deliver services in more than one country, which allows them to leverage geographic advantages, optimize resources, and tap into diverse markets. MNCs often pursue strategies that can include local production, global supply chains, and tailored marketing strategies to fit different regional markets, benefiting from economies of scale and increased competitiveness.

In contrast, other options suggest limitations that do not align with the characteristics of MNCs. For instance, stating that MNCs only operate in their home country does not reflect the essence of what makes a corporation multinational. Similarly, engaging in local businesses for export only suggests a narrower focus than what MNCs typically employ. The idea that MNCs would be limited to a single product line in international markets overlooks the common practice of these corporations to diversify their product offerings across different markets to maximize profitability and mitigate risks. Thus, the holistic presence of MNCs across borders is what distinctly characterizes them.