Question

Nestlé, Unilever, GlaxoSmithKline, and Royal Philips Electronics can be considered transnational companies on the basis of:

1) sales outside the home country to total sales.
2) assets outside the home country to total assets.
3) employees outside the home country to total employees.
4) headquartered in a relatively small home-country market.
5) all of the above

Answer 1

Nestlé, Unilever, GlaxoSmithKline, and Royal Philips Electronics can be considered transnational companies based on all of the above criteria: sales outside the home country, assets outside the home country, employees outside the home country, and being headquartered in a relatively small home-country market.

Step-by-step explanation:

A transnational company is a multinational corporation (MNC) that operates in multiple countries. In the case of Nestlé, Unilever, GlaxoSmithKline, and Royal Philips Electronics, they can be considered transnational companies based on all of the above criteria mentioned in the question:

1. Their sales outside the home country to total sales indicate their global reach.
2. They have assets outside the home country, which shows their investment and expansion in other markets.
3. They have employees outside the home country, demonstrating their international workforce.
4. Although not directly mentioned in the question, being headquartered in a relatively small home-country market also supports their status as transnational companies.

These companies exemplify the characteristics of MNCs and their ability to operate globally, influence international policies, and contribute significantly to the global economy.