Final answer:
A domestic firm that expands its business to operate in overseas markets using its existing capabilities is indeed a multinational corporation. Multinationals play a significant role in the global economy and can influence local economies, laws, and job markets in countries they operate in.
Step-by-step explanation:
A multinational corporation (MNC) is defined by its operation across multiple countries, using its existing capabilities to produce goods or provide services. True to this definition, a domestic company that leverages its capabilities to expand into overseas markets would indeed qualify as a multinational corporation. However, it's important to note that an MNC is not merely defined by foreign market entry; there are additional characteristics such as collecting capital from a variety of nations, operating without regard to national borders, and influencing the global economy due to their significant role.
MNCs often have the power to affect the economies they enter by contributing to the GDP, business cycles, and possibly influencing local legislation. They may provide opportunities such as higher wages in developing countries, but can also contribute to local concerns like outsourcing and job availability in developed countries.