Final answer:
Firms that operate and manufacture products in multiple countries are known as multinational corporations (MNCs). They are significant players in global economics and have an influence on the GDP and business cycles of the countries in which they operate.
Step-by-step explanation:
Firms that purposely transcend national borders so that their products can be manufactured at sites all over the world are called multinational corporations or MNCs. An example of this is how Apple designs its products in the United States, sources components from different countries, assembles them in another, and provides tech support from a country like India. Multinationals have an influence on the GDP, business cycles, and bear the legal and cultural considerations of each country they operate in. The globalization movement and economic integration such as the rise of the WTO and regional trading blocks have given these multinational corporations the platform to extend their reach and influence globally.
Firms that purposely transcend national borders so that their products can be manufactured at sites all over the world are called multinational corporations (MNCs). These companies have manufacturing or service companies in various countries and are subject to the laws, taxes, customs, and culture of the nations where they do business. They take advantage of global economic integration and the international division of labor to extend their reach and influence around the world.