Final answer:
Exporting is typically the first step for manufacturing companies beginning global expansion, as it allows entry into foreign markets with lower risk. Multinational corporations grow by strategies like outsourcing and globalization, affecting job availability and economic conditions in their home countries while also seeking lower costs abroad.
option e is the correct
Step-by-step explanation:
The question asks about the typical initial step manufacturing companies take when starting global expansion. Historically, exporting has been the most common first step for manufacturers looking to grow their business internationally. This is because exporting allows a company to enter foreign markets with lower risk and investment compared to establishing a subsidiary, forming a joint venture, or franchising right away. Engaging in international trade like this, even small economies can reap the benefits of economies of scale, improve their competitiveness, and offer a wider variety of products.
Multinational corporations (MNCs) have used strategies like outsourcing and forming mergers to expand their influence and increase efficiency. As we've seen with companies like McDonald's, which are an example of globalization, the reach of MNCs is virtually worldwide. Their presence in many countries is a characteristic of their disregard for national borders and their ability to concentrate wealth.
Clothing companies relocating to China from the U.S. illustrate this global shift, seeking lower production costs, which is a form of offshoring and sometimes outsourcing. Conversely, this has led to a reduction in manufacturing jobs in the countries they've left, which can cause economic shifts in those nations.