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

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

Get your international business terms right

BNET

This entry was posted on Monday, June 18th, 2007 at 10:35 am and is filed under Global Business, Globalization, International Business, Lee Iwan, Lee Iwan Accumulated Experience, Leeiwan, Leon, Leon Guanajuato, Leon Guanajuato Mexico, global, global outsourcing, global sales, international, international business development, international business development executive, international business manager, international business relationships, international business travel, international business travellers, international competition, international negotiations, international sales & marketing, international travel, multinational, multinational business, transnational, transnational business. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

21 Responses to “Difference between a global, transnational, international and multinational company”

  1. Leslie Leite Says:
    June 18, 2007 at 1:00 pm

    Thanks for sharing Andrew’s post and helping educate business professionals!

    Leslie Leite
    BNET

  2. TGK VASISTA Says:
    January 14, 2008 at 6:47 am

    Very good explanation, I have seen some things like this from authors of MIS -James A Obrian, IT for Inernational Trade – Turban and Rainer

  3. Huong tra Says:
    January 20, 2008 at 5:31 am

    it’s very useful !!! Thanks so much.
    Would you recommend me some other materials concerning MNC and TNC

  4. Amit Says:
    February 28, 2008 at 1:14 am

    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!!!

  5. neno Says:
    April 16, 2008 at 3:48 am

    Thank you very much.
    - gratefull student

  6. Farzana hussain Says:
    June 6, 2008 at 1:58 pm

    i am student BBA so multinational and global mkt difference very nice point out this defination

  7. zahra Says:
    October 24, 2008 at 4:52 am

    Thanks it was very usefull. I have been trying to understand the difference for the past two weeks

  8. jannice Says:
    November 15, 2008 at 9:01 am

    thank you! i have been trying to find the right terms in my marketing paper! keep up the good work!

  9. name Says:
    November 24, 2008 at 5:57 pm

    thanks for this useful information

  10. jubin Says:
    November 24, 2008 at 5:58 pm

    thanks for this useful information thanks once again

  11. RAMA UDUPA Says:
    November 28, 2008 at 11:21 pm

    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.

  12. Up Early On a Sunday Morning - International or Multinational? — SmallBusinessStreet.com Says:
    January 4, 2009 at 6:12 am

    [...] describing my company as being ‘international’ or ‘multinational’ – found a good blog post that describes them accurately I think… days is already off to a good [...]

  13. long Says:
    February 1, 2009 at 9:04 am

    thank you! It’s a useful information

  14. Tom C Says:
    March 30, 2009 at 2:01 pm

    Thanks for this, useful for my MBA exam revision. Do you have a well known example of each please, particularly multinational & transnational?

  15. Asif Rahman Says:
    April 6, 2009 at 8:12 am

    Very good information indeed. However, could you please help me out with the name of some in each category?
    Thanks

  16. MD SAJIDUL ISLAM Says:
    July 5, 2009 at 12:09 am

    what are the attributes of a transnational company?

  17. irfan Says:
    July 8, 2009 at 10:53 pm

    Please will you confirm me the difference between “Multinational company and International Franchise” i will be very thankful.

  18. Eliud Nkunja Imaana Says:
    July 9, 2009 at 12:10 am

    Thanks (Ahsante sana). Please give some examples

    Cheers

  19. Sadik Al Hossain Jinnette Says:
    October 21, 2009 at 11:18 pm

    im not completely clear by above explanation.There should have some example as well.

  20. saeed Says:
    November 4, 2009 at 3:29 am

    good used of technology. bundle of thanks from my side.

  21. uzma shereen Says:
    November 19, 2009 at 4:21 am

    please i want to more information about Global & International Marketing with example.

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