Which term refers to organizations that control production or service facilities across multiple countries?

Study for the SHRM US Employment Laws and Regulations Test. Use flashcards and multiple choice questions with hints and explanations. Get exam ready!

The term that refers to organizations controlling production or service facilities across multiple countries is "multinational enterprises." These entities operate in various countries, leveraging resources, markets, and labor from different regions to optimize their operations, reduce costs, and expand their global reach. Multinational enterprises often have a commitment to local markets while also maintaining overarching strategic control from their home country. This structure allows them to adapt their business practices to the cultural and economic environments of the countries in which they operate.

The other options do not accurately describe such organizations. Domestic enterprises strictly operate within one country, without any international reach. International corporations might engage in cross-border trade but do not necessarily have physical operations or facilities in multiple countries. Export companies focus primarily on selling goods abroad, rather than establishing extensive operational presence in foreign markets, which differentiates them from multinational enterprises.

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