What defines a multinational company?

A multinational company is primarily defined by its operations in multiple countries. This type of business manages production or delivers services in more than one country and has a global reach. Multinational companies typically have a centralized head office in one country, coordinating their operations across various international locations. They often adapt to local markets while benefiting from economies of scale achieved through their global network.

The other options do not accurately capture the essence of what constitutes a multinational company. A company that operates solely in its home country lacks the international presence that defines a multinational. Similarly, while a local business with international sales may engage in exporting, it does not maintain operations or a presence in other countries, which is a key characteristic of multinational companies. Lastly, a partnership among multiple firms refers to a collaborative business structure rather than defining the operational scope of a single multinational entity. Thus, the defining feature of a multinational company is its engagement and operations spanning multiple countries.