What is multinational corporation how it is different from a global company International company and transnational company?

Syed Kashif Mushtaq, PMP®, SPHRi

Syed Kashif Mushtaq, PMP®, SPHRi

Strategic Planning & Budgeting Unit Manager at PRINCE SULTAN DEFENSE STUDIES AND RESEARCH CENTER

Published May 18, 2016

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

• International
• Multinational
• Global
• Transnational 

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 has locations or facilities in multiple countries, but each location functions in its own way, essentially as its own entity.
• Global companies also has locations in multiple countries, but they’ve figured out to create one company culture with one set of processes that facilitate a more efficient and effective single global organization.
• Transnational companies  are much more complex organizations. Its a commercial enterprise that operates substantial facilities, does business in more than one country and does not consider any particular country its national home. One of the significant advantages of a transnational company is that they are able to maintain a greater degree of responsiveness to the local markets where they maintain facilities.