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Question

Adam's Apple Corporation ships all of the apples from its orchards in Washington to a single buyer in Japan. The firm's entire profits are derived from this international transaction. Adam's Apple Corporation?

1.is an example of a multinational corporation.

2.is not a multinational corporation.

3.is contributing to the U.S. balance of trade deficit.

4.will benefit greatly from the establishment of NAFTA.

Answer 1

Answer 1 is correct.

2. Incorrect because the company IS doing business outside its own nation's borders.

3. Incorrect because by exporting their product they are reducing the trade deficit (by a miniscule amount LOL)

4. NAFTA (North America Free Trade Agreement). Since the Adam's Corp. is solely involved with shipping its produce to Japan, NAFTA does not even enter the picture.