Question

Don, the CEO of Pie Technology, announced in a conference call the corporate strategic goal of operations in several countries. When this long-term vision by Don is realized, it would qualify Pie Technology as a multinational corporation.

1) True
2) False

Answer 1

The statement is true; when Pie Technology realizes its strategic goal to operate in several countries, it would qualify as a multinational corporation.

Step-by-step explanation:

When the CEO of Pie Technology, Don, announces the strategic goal of operating in several countries, it does indeed suggest the ambition to become a multinational corporation.

A multinational corporation is defined as a company that has facilities and other assets in at least one country other than its home country, and it typically has a centralized head office where they coordinate global management.

Therefore, the statement that Pie Technology would qualify as a multinational corporation upon achieving this vision is true.

Considering the hypothetical example of Technotron, they increased their efficiency and profitability through a new scientific technology. If Technotron decided to also operate in several countries, this strategy would potentially lead them to become a multinational corporation as well.

Expanding operations internationally is a sign of scaling the business, allowing access to new markets, and diversifying the company's economic presence across the globe.