Difference between a global, transnational, international and multinational company


We tend to read the following terms and think they refer to any company doing business in another country.

  • Multinational
  • International
  • Transnational
  • Global

Each term is distinct and has a specific meaning which define the scope and degree of interaction with their operations outside of their “home” country.

  • International companies are importers and exporters, they have no investment outside of their home country.
  • Multinational companies have investment in other countries, but do not have coordinated product offerings in each country. More focused on adapting their products and service to each individual local market.
  • Global companies have invested and are present in many countries. They market their products through the use of the same coordinated image/brand in all markets. Generally one corporate office that is responsible for global strategy. Emphasis on volume, cost management and efficiency.
  • Transnational companies are much more complex organizations. They have invested in foreign operations, have a central corporate facility but give decision-making, R&D and marketing powers to each individual foreign market.

Please Refer: http://leeiwan.wordpress.com/2007/06/18/difference-between-a-global-transnational-international-and-multinational-company/

 

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