Why was the Dutch East India Company called a multinational corporation?
1 It was a Dutch company but only did business in Indian tea.
2 It was a Dutch company but was owned by monarchs of many European nations.
3 It was a Dutch company but operated its business in Indonesia.
4 It was a Dutch company but established colonies in the Americas.
3) It was a Dutch company but operated its business in Indonesia.
It was a Dutch company but operated its business in Indonesia.
3
The correct answer is 3. It was a Dutch company but operated its business in Indonesia.
The Dutch East India Company (Vereenigde Oost-Indische Compagnie or VOC) was considered a multinational corporation because even though it was started and primarily operated as a Dutch company, it conducted its business operations in multiple countries, particularly in the Indonesian archipelago during the 17th and 18th centuries. The VOC established trading posts and colonies across Indonesia, including in places like Java, Sumatra, and the Moluccas.
To determine the correct answer, it's essential to understand the definition of a multinational corporation. A multinational corporation is a company that has operations or subsidiaries in multiple countries. It conducts business activities, such as manufacturing, sales, and trade, in various nations, usually beyond the company's home country. In the case of the Dutch East India Company, although its roots were in the Netherlands, its widespread operations in Indonesia made it a multinational corporation.