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The company which has gone global is called either a multinational corporation (MNC) or a transnational company (TNC).

MNC and TNC are those of corporations or companies that operate in more than one country, gains in marketing the product, research and development, product diversification, financial strength and cost benefit, human resources competency, logistic supports, accounting standard which is not available in purely domestic company.

MNC is more focused on adapting their products and services to each individual local market. They do not share R&D, Decision making power to each foreign country where they do business. MNC have clearly identifiable home country and head office, there is centralized management system and structure.


Example –APPLE Inc., Coca cola, PepsiCo, Citigroup, Procter and Gamble, Nestle, IBM, Microsoft corporation, TATA Group, Sony corporation, HP

  • Transnational corporations are type of multinationals corporations. TNC gives decision making, R&D and marketing powers to each individual’s foreign market. TNC has been technically defined united nations commission on Transnational corporation and investment as enterprise which own or control production or service facilities outside the country in which they are based.

Example- GE, Deloitte, Shell, Accenture, Glaxo-Smith Klein, Allianz, AXA.

A further development, perhaps, will be the super-national enterprise. It is worldwide enterprise chartered by a substantially non-political international body such as WTO, IMF or World Bank.

With its integrative view, it should be able to draw the economic world closer together. It could serve all nations without being especially attached to anyone of them.


Differences between Multinational company and Transnational company


Multinational Company


Transnational company

Home company with many subsidiaries

Multinational companies own a home company and its branches and  subsidiaries across the globe


No home country but with  many companies

Transnational companies do not have just subsidiaries but as good as many companies across the globe.

Centralized management system

Multinational companies have centralized a management system.

No centralized management system 

Transnational companies do not have a centralized management system.

Facing barriers in decision making

Multinational companies will face a barrier in decision making due to its centralized management system.

Facing no decision making barrier

Transnational  companies are able to gain more interest in the local market since they maintain their own systems

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