Final answer:
The accurate statement about an export management company is that it acts as a middleman for companies willing to involve their own personnel in international functions, which is answer D. EMCs facilitate international trade for smaller businesses and are not limited in size nor do they always work under the manufacturer's name. They play a key role in enabling businesses of all sizes to participate in the global market.
Step-by-step explanation:
The true statement about an export management company (EMC) is D) It acts as a middleman for companies willing to involve their personnel in international functions. EMCs are crucial for businesses, especially small to medium-sized enterprises, that wish to participate in international trade without establishing their dedicated export department. An EMC handles the various aspects of exporting, including market research, foreign distribution, and logistics, and may sometimes deal with marketing and sales support. These companies often work under their name, not the manufacturing firm's name, which eliminates options A and B.
Regarding international trade, it allows small economies to leverage economies of scale and benefit from competition and the variety offered by multiple producers. Since a single entity cannot typically produce all components of complex products efficiently, parts are sourced from various countries and companies, enabling specialization and cost efficiency. International trade fosters a global market where even small-scale businesses can access larger markets and production capabilities, broadening the reach of their goods and services.
When discussing multinational corporations (MNCs), are large business entities that operate in multiple countries and possess the ability to influence global trade policies and economic conditions. MNCs come in various forms, from single-product firms to conglomerates like Ford Motor Company, which produce a wide range of products. Statement D) in the provided reference, suggests that MNCs are not exclusively headquartered in the United States, thus making it the incorrect characteristic of MNCs.
Most American businesses are actually small enterprises, contrary to the perception that the business landscape is dominated by corporate giants. The U.S. Census Bureau reported that the vast majority of American businesses have fewer than 20 employees, highlighting the diverse scale of business operations within the economy.