What characterizes Transnational Corporations (TNCs)?

Transnational Corporations (TNCs) are defined by their ability to operate in multiple countries and usually have production facilities that cross national borders. This characteristic allows TNCs to leverage global efficiencies, accessing resources, labor, and markets beyond their home country.

By establishing production in different countries, TNCs can optimize costs through economies of scale, benefit from localized knowledge, and respond better to consumer demands in various regions. This international operational structure enables them to compete more effectively in the global marketplace, making them a significant driver of globalization.

The other choices do not accurately represent TNCs. The first choice implies a limitation to a single country, which contradicts the essence of being transnational. The third choice also suggests a national focus, which is not applicable as TNCs inherently engage in international markets. Lastly, the fourth choice conflates TNCs with small businesses, which typically do not have the extensive international operations characteristic of transnational corporations.