Which of the following best describes a multi-national organization?

CIPS Managing Ethical Procurement and Supply Test is designed to enhance your understanding of ethical practices in procurement. Study with comprehensive questions and explanations. Prepare effectively for your exam!

The description of a multi-national organization as a business operating in multiple countries is accurate because such organizations engage in international trade and establish operations, partnerships, or subsidiaries across various nations. This international presence allows them to leverage diverse markets, adapt products and services to local demands, and optimize their supply chains by sourcing materials and labor from different regions.

In contrast, an organization with multiple sub-offices in one country refers to a national organization rather than a multi-national, as it does not extend beyond national borders. A local company that only sells domestically operates within a single country and does not possess the international scope characteristic of multi-nationals. An organization owned by a single individual does not inherently indicate its operational reach and may also be limited to a domestic market. Thus, the essence of a multi-national organization lies in its global engagement and operations across several countries, making the second option the best descriptor.

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