We tend to read the following terms and think they refer to any company doing business in another country.
- Multinational
- International
- Transnational
- Global
Andrew Hines over at BNET has brief and clear definitions of each of these terms, Get your international business terms right.
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.
Andrews’s advice is if in doubt about the right term to use, try the generic term “international business”.
Related Links
Thanks for sharing Andrew’s post and helping educate business professionals!
Leslie Leite
BNET
Very good explanation, I have seen some things like this from authors of MIS -James A Obrian, IT for Inernational Trade – Turban and Rainer
it’s very useful !!! Thanks so much.
Would you recommend me some other materials concerning MNC and TNC
It was useful I was searching the differences still some more points and examples could have been there and it would have perfect differentiation.
Anyways thank u!!!
Thank you very much.
– gratefull student
i am student BBA so multinational and global mkt difference very nice point out this defination
Thanks it was very usefull. I have been trying to understand the difference for the past two weeks
thx u for this clear summary. I was trying to dissect diagrams of each term, but had difficulty making sense of them. Have a great day!
thank you! i have been trying to find the right terms in my marketing paper! keep up the good work!
thanks for this useful information
thanks for this useful information thanks once again
vERY GOOD INFO. AS I AM STUDYING MBA HR. I HAD A LITTLE CONFUSION REGARDING ALL THE ABOVE TERMS. NOW I AM CLEAR.
THANKS FOR THE INFO.
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thank you! It’s a useful information
Thanks for this, useful for my MBA exam revision. Do you have a well known example of each please, particularly multinational & transnational?
Very good information indeed. However, could you please help me out with the name of some in each category?
Thanks
what are the attributes of a transnational company?
Please will you confirm me the difference between “Multinational company and International Franchise” i will be very thankful.
Thanks (Ahsante sana). Please give some examples
Cheers
im not completely clear by above explanation.There should have some example as well.
good used of technology. bundle of thanks from my side.
please i want to more information about Global & International Marketing with example.
i m not satisfy from this defintion please explain
ii Niwega muno. Thank yu buddy for clearing the confussion.
[…] 2/22/10 By lesley2010 Snow day…home researching/writing Google China paper and beginning readings in my Global Indigenous Media test (W&S). One of the difficulties I have is keeping the various forms of media and businesses separate in my head. So on the first day of class I looked up and wrote down the definitions for indigenous media, multinational media, transnational media, and international media. I refer back to my definitions often and they really help me understand what I am studying. Today I came across this blog which also defines global companies. It will be useful to me as I move forward with my understanding of global indigenous media. Here’s the link: https://leeiwan.wordpress.com/2007/06/18/difference-between-a-global-transnational-international-and-… […]
thank you sir, that is really nice and simple explanation than i ever seen in the books.
thanks u sir it is the basic concept that a management student should know
Thanks for your clear explanation………………..
Thank you so much Sir for such pleasant presentation. Real i appreciate your academic evidence.
yes!
it is very helpful for us because we had been in confusion regarding these concepts
thanks
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thnx;this our assigment and a am confusing by search many site but know clear about MNC and TNC.thanks
i am student MCOM
verry nice presentation. a lot of thanks.
[…] These are complex terms that even people in the business world get confused! A blog post here does a great job at summarizing the difference between all the terms used to talk about […]
information is too good, give the examles for each
Thanks, simple and clear difference
Very much thanks for your clear & simple explanation.
I want to more information about Global & International Marketing with example.
Please help me. This is my curacy for achieving the knowledge.
I am CA qualified i.e. as same as ACCA
I wasn’t able to look through all of your comments, but I was curious as to the source for your definitions. I’m currently studying Fatehi, Bartlett, and Goshal. Just looking to follow the source of information. Thanks.
Thanks for the definition
hi, Lee
I am a college student from China. Now I am serching the difference between Global business and International business. But I can’t get a satisfying answer. Could you please give me an answer about that? thanks
Helen,
In my definition:
Global – related to the entire world
International – between 2 or more countries
In the strictest sense a global business would be one with relationships in all countries or continents while an international business would be one that does business in one or more countries.
Lee
owsum communicability…. nice post
it was never simple before reading this.. thanks millions
thanku i m mba studnt inf r so use ful
The useful information is here, But need to explain deeply.
thank you so much to define easily
Thank you very much.Please give example for each.
Thank you, Lee!
If an “MOU” sign between Banglavision Inc, USA & Divine Holdings Ltd in Bangladesh for doing business in IT sector. If the business deal covers many countries, so is it Multinational or Global. or may I think It is International business.
thanks….. itsvery useful….
Hi Lee,
Please could you give example for each , so that i could have a better understanding of each term .
Thank you
explanation is very surface…can you support with real example of organization .that will be a better explanation
thks
It was one of the simplest definition that I have ever seen. Thanks a lot to U ,sir………..
[…] We tend to read the following terms and think they refer to any company doing business in another country. Multinational International Transnational Global Andrew Hines over at BNET has brief and clear definitions of each of these terms, Get your international business terms right. 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 … Read More […]
thank you very much, comprehensive definitions,
I was having a confusion between the term Multinational and internation. This information is realy help ful.
really very helpful for the students having their specialization in international business
hi sir my name is Munna Kumar. I am the student of business management from Bangalore i want to know about the history of international business.
thanks for this helpful material… plz would you add some examples and explanination..
Thanks a lot to Lee and Andrew for these concise definitions. I’m from Perú.
really helpful
Examples:
Multinational companies as mentioned at the top have a base corporation or factory! in their home country and some other branches in other countries which all the decisions make at the base company and other branches of the same company just obey the orders for example if we say Toyota is a multinational company then it has its base in Japan and in other countries such as Malaysia or India products just assembles with the given plan to them from Japan.
Transnational is like multinational but all other branches of company have the right to decision making like coca cola or McDonald which in some Arabian countries to eat pork is forbidden and branches of McDonald remove burgers with pork from their menu or make some changes in integrates of them or we can say in some countries like turkey people prefer drinks with less sugar or in Dubai peoples cuisine is more sugar in drinks, so here branches make some changes in their products too keep their customers all around the world.
I reall love this, and i want to say a big big thank you and i apprecaite. Keep it up.
differences given was really göod, but dnt u think its bit short.
Nice but little bit short to understand. Topics terminology is more or less critical. What ever its not bad.
[…] international, transnational, or multinational company? They’re easy to confuse, but knowing the difference between them and knowing where your company falls will set the tone for all business decisions you […]
hi
my self is muninder and i am a student of instritute of company secretaries of india . i want to know about the difference between international strategy and transnational strategy,,
thanx.u r full of integrity.
thanks a lot Mr Lee!
Thank you Mr. Lee, Now my concept is clear, it is very useful for me.
I’m not an English native speaker. It’s hard for me to understand the difference between international, transnational and multinational. Your post is really helpful. Thanks a billion.
I have one advice for you: explain them a little bit more by giving some examples. I think good examples can be Gucci, Volkswagen and Virgin Group.
Hello, can I receive few answer from you? Thanks for your kindness.
1. Why international more difficult than domestic HRM? How is the different PEST in different country took affect?
2. under what condition company choose PCN, HCN, TCN? What is the type of recruit and selection, training and development, reward. Explain each base on 3type, how performance management carry in?
very good and clear explanation, i’m aware of the definitions because of my elective subject “Corporate Governance” held during my MBA degree.
Enrico Massei
Associate of Australian Migration & Legal Status Advice
Thank you,i am also very grateful
……
what is the 3 difference between multinational and trans multinational, overall both organization is same having footprint in other countries.
Hey, firstly I appreciate your definition as given above but I would tend to think that there needs some clarity on the issue, because to me those look like strategies of doing international business if you look at it critically. I think it would have been more useful if you give the outreach and mode of operation. For example I am from Kenya and we have some companies e.g East Africa Breweries ltd, Nakumatt, Equity Bank etc, which operate within the East African region and qualify to be termed as MNC’S since according to the definition they do operate in more than one country. Would it therefore be right to say a MNC operates in more than one CONTINENT??? In the same breadth is there or are there companies referred to as REGIONAL companies which operate in a specific geographical area to be more precise just operating in one continent.
My other concern is should a MNC have a production firm/plant in another country to be termed as a MNC. And if this is the case would a partnership in more than one country be termed as a MNC???
With example it could have been better to understand…..
Thank you so much for sharing this information with us. Very helpful.
thank you so much sir.. but could you please identify 2 brands who are involved in each of the retailing type in Pakistan…
My question is: wouldn’t a transnational and a multinational company pretty much be the same? They both have investments in other countries and adapt their marketing, product design and cost to the targeting country. Please explain this.
Javon Davis
DEAR SIR
THANK YOU FOR YOUR ABOVE EXPLANATION ABOUT IB STAGES AND I WANT MORE POINTS STILL ,SO MAKE IT MORE POINT SIR.
THANK YOU SIR
it is very useful explanation sir. thank you.
thanks 4 de clear concept…!!
[…] Please Refer: https://leeiwan.wordpress.com/2007/06/18/difference-between-a-global-transnational-international-and-… […]
Hi ! can you plz give me the examples of global and international communications plz :)
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Sir, The definitions of multinational company, global company and transnational company given by you are very much useful to me, a MBA student. I shall be thankful if you could kindly give me further features of multinational, global and transnational company with suitable examples.
Thanking you.
Am an MBA student. I had a little bit confusion with those topics. After readout it got a clarity… Thanks
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what is the difference between transnational and international
Why are Multinational companies describe as Global Company??
Help me to know these thanks
[…] Difference between a global, transnational, international … – Jun 18, 2007 · We tend to read the following terms and think they refer to any company doing business in another country. Multinational International Transnational Global … […]
than q u sir regarding above information
Nice. Easy to understand
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I just establish my MBA , so i did not understand the meaning and the purposes for this four types of business strategy and how i could recognised the types for the company’s strategy with examples .
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Difference between a global, transnational, international and multinational company | Lee Iwan Accumulated Experience
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Difference between a global, transnational, international and multinational company | Lee Iwan Accumulated Experience
finally, I got good explanation
Do you mind if I quote a few of your posts as long as I provide credit and sources back to your blog?
My website is in the very same area of interest as yours and my visitors would really benefit from a lot of the information you provide here.
Please let me know if this okay with you. Thanks!
Go ahead, thanks for asking!
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