Final answer:
The term that describes when a company sets up facilities in a few foreign countries is 'multinational expansion.' This involves multinational corporations establishing operations abroad, which can lead to both positive economic contributions and negative impacts like job losses in their home countries.
Step-by-step explanation:
When a company sets up one or a few facilities in one or a few foreign countries, it is participating in multinational expansion. This is exemplified by multinational corporations (MNCs) which have a presence in various countries through manufacturing or service operations. These corporations contribute to the host country's GDP, engage in the circular flow of the economy, and are a part of the business cycle. They operate under the laws, pay taxes, and adapt to the customs and culture of the countries they are in. Multinationals can impact countries positively by providing higher wages and benefits compared to local businesses and negatively by influencing laws to their own benefit or contributing to job losses in their home countries due to offshoring.
An important aspect of globalization is that MNCs are now integral to economic growth worldwide and help balance the global market. However, there are legitimate concerns about globalization in terms of job losses, lower environmental protections, and decreased worker pay. Despite these drawbacks, globalization and the expansion of MNCs often result in the availability of goods in regions of the world that cannot produce them independently.