difference between a global, transnational, international and multinational company « lee iwan...

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Difference between a global, transnational,international and multinational company

18 06 2007We tend to read the following terms and think they refer to any company doing business inanother country.

MultinationalInternationalTransnationalGlobal

Andrew Hines over at BNET (h p://www.bnet.com/) has brief and clear definitions of each ofthese terms, Get your international business terms right. (h p://blogs.bnet.com/intercom/?p=297&tag=nl.e808)

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

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

Andrews’s advice is if in doubt about the right term to use, try the generic term “internationalbusiness”.

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Get your international business terms right (h p://blogs.bnet.com/intercom/?p=297&tag=nl.e808)

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Date : June 18, 2007

Categories : global, Global Business, global outsourcing, global sales, Globalization,international, International Business, international business development, internationalbusiness development executive, international business manager, international businessrelationships, international business travel, international business travellers, internationalcompetition, international negotiations, international sales & marketing, international travel,Lee Iwan, Lee Iwan Accumulated Experience, Leeiwan, Leon, Leon Guanajuato, LeonGuanajuato Mexico, multinational, multinational business, transnational, transnationalbusiness

79 responses

18 06 2007Leslie Leite (13:00:54) :Thanks for sharing Andrew’s post and helping educate business professionals!

Leslie LeiteBNET

14 01 2008TGK VASISTA (06:47:34) :Very good explanation, I have seen some things like this from authors of MIS -James AObrian, IT for Inernational Trade – Turban and Rainer

20 01 2008Huong tra (05:31:11) :it’s very useful !!! Thanks so much.Would you recommend me some other materials concerning MNC and TNC

28 02 2008Amit (01:14:15) :It was useful I was searching the differences still some more points and examples could have


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been there and it would have perfect differentiation.Anyways thank u!!!

16 04 2008neno (03:48:23) :Thank you very much.- gratefull student

6 06 2008Farzana hussain (13:58:37) :i am student BBA so multinational and global mkt difference very nice point out thisdefination

24 10 2008zahra (04:52:52) :Thanks it was very usefull. I have been trying to understand the difference for the past twoweeks

25 10 2008mikey (05:31:28) :thx u for this clear summary. I was trying to dissect diagrams of each term, but had difficultymaking sense of them. Have a great day!

15 11 2008jannice (09:01:38) :thank you! i have been trying to find the right terms in my marketing paper! keep up thegood work!

24 11 2008name (17:57:29) :thanks for this useful information

24 11 2008jubin (17:58:07) :thanks for this useful information thanks once again

28 11 2008RAMA UDUPA (23:21:39) :vERY GOOD INFO. AS I AM STUDYING MBA HR. I HAD A LITTLE CONFUSIONREGARDING ALL THE ABOVE TERMS. NOW I AM CLEAR.

THANKS FOR THE INFO.

4 01 2009Up Early On a Sunday Morning - International or Multinational? —SmallBusinessStreet.com (06:12:05) :[...] describing my company as being ‘international’ or ‘multinational’ – found a good blogpost that describes them accurately I think… days is already off to a good [...]

1 02 2009long (09:04:04) :thank you! It’s a useful information


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30 03 2009Tom C (14:01:49) :Thanks for this, useful for my MBA exam revision. Do you have a well known example ofeach please, particularly multinational & transnational?

6 04 2009Asif Rahman (08:12:46) :Very good information indeed. However, could you please help me out with the name ofsome in each category?Thanks

5 07 2009MD SAJIDUL ISLAM (00:09:23) :what are the a ributes of a transnational company?

8 07 2009irfan (22:53:08) :Please will you confirm me the difference between “Multinational company andInternational Franchise” i will be very thankful.

9 07 2009Eliud Nkunja Imaana (00:10:04) :Thanks (Ahsante sana). Please give some examples

Cheers

21 10 2009Sadik Al Hossain Jinne e (23:18:19) :im not completely clear by above explanation.There should have some example as well.

4 11 2009saeed (03:29:30) :good used of technology. bundle of thanks from my side.

19 11 2009uzma shereen (04:21:03) :please i want to more information about Global & International Marketing with example.

24 12 2009Riaz Ullah khan (10:00:19) :i m not satisfy from this defintion please explain

9 02 2010jeff (02:37:42) :ii Niwega muno. Thank yu buddy for clearing the confussion.

22 02 20102/22/10 « Lesley's Comm 430 Blog (14:38:04) :[...] 2/22/10 By lesley2010 Snow day…home researching/writing Google China paper andbeginning readings in my Global Indigenous Media test (W&S). One of the difficulties Ihave is keeping the various forms of media and businesses separate in my head. So on thefirst 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


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definitions often and they really help me understand what I am studying. Today I cameacross this blog which also defines global companies. It will be useful to me as I moveforward with my understanding of global indigenous media. Here’s the link:h p://leeiwan.wordpress.com/2007/06/18/difference-between-a-global-transnational-international-and-… [...]

10 03 2010habib (03:22:51) :thank you sir, that is really nice and simple explanation than i ever seen in the books.

11 03 2010pawan kumar (03:34:24) :thanks u sir it is the basic concept that a management student should know

26 03 2010Mazharul (06:19:57) :Thanks for your clear explanation………………..

28 03 2010Jaspar F. Mmbaga (06:11:58) :Thank you so much Sir for such pleasant presentation. Real i appreciate your academicevidence.

15 04 2010sobia saeed (05:05:37) :yes!it is very helpful for us because we had been in confusion regarding these conceptsthanks

22 04 2010Difference between a global, transnational, international and multinationalcompany(Janice) « Ppidentity5's Blog (08:45:33) :[...] h p://leeiwan.wordpress.com/2007/06/18/difference-between-a-global-transnational-international-and-… [...]

5 05 2010izhar ullah (06:33:55) :thnx;this our assigment and a am confusing by search many site but know clear about MNCand TNC.thanks

5 05 2010izhar ullah (06:34:47) :i am student MCOM

16 05 2010sudhir kumar (14:38:23) :verry nice presentation. a lot of thanks.

1 06 2010Multinational & Transnational Corporations « Ms. Levin’s Social Studies 10 (10:45:47) :[...] These are complex terms that even people in the business world get confused! A blogpost here does a great job at summarizing the difference between all the terms used to talkabout [...]


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17 06 2010roopashree (02:20:19) :information is too good, give the examles for each

26 08 2010Abebe Berhe (07:40:38) :Thanks, simple and clear difference

26 08 2010Alauddin - Bangladesh (22:16:38) :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

28 09 2010ariehdavid (10:29:28) :I wasn’t able to look through all of your comments, but I was curious as to the source foryour definitions. I’m currently studying Fatehi, Bartle , and Goshal. Just looking to followthe source of information. Thanks.

6 10 2010Hassan Hussain (10:30:21) :Thanks for the definition

10 10 2010Helen (00:09:53) :hi, LeeI am a college student from China. Now I am serching the difference between Globalbusiness and International business. But I can’t get a satisfying answer. Could you pleasegive me an answer about that? thanks

11 10 2010Lee Iwan (07:55:18) :Helen,

In my definition:

Global – related to the entire worldInternational – between 2 or more countries

In the strictest sense a global business would be one with relationships in all countries orcontinents while an international business would be one that does business in one or morecountries.

Lee

29 10 2010Asif (01:00:42) :owsum communicability…. nice postit was never simple before reading this.. thanks millions


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31 10 2010abdul rahman sahir 03317099809 (23:07:37) :thanku i m mba studnt inf r so use ful

25 12 2010zahid hussain (02:20:25) :The useful information is here, But need to explain deeply.

1 01 2011adil khan (22:08:08) :thank you so much to define easily

25 01 2011sarbapreey (12:53:43) :Thank you very much.Please give example for each.

9 02 2011Neil Mukherjee (02:02:08) :Thank you, Lee!

16 02 2011Md.Golam Mowla (00:03:01) :If an “MOU” sign between Banglavision Inc, USA & Divine Holdings Ltd in Bangladesh fordoing business in IT sector. If the business deal covers many countries, so is it Multinationalor Global. or may I think It is International business.

21 02 2011arshi (12:42:52) :thanks….. itsvery useful….

27 02 2011maku (00:52:15) :Hi Lee,

Please could you give example for each , so that i could have a be er understanding of eachterm .Thank you

8 04 2011Fran (10:22:28) :explanation is very surface…can you support with real example of organization .that will bea be er explanationthks

16 04 2011Md. Hakiz John Noory Romel (05:01:18) :It was one of the simplest definition that I have ever seen. Thanks a lot to U ,sir………..

17 05 2011Difference between a global, transnational, international and multinational company (viaLee Iwan Accumulated Experience) | The World From My Eyes (10:19:19) :[...] We tend to read the following terms and think they refer to any company doing businessin another country. Multinational International Transnational Global Andrew Hines over at


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BNET has brief and clear definitions of each of these terms, Get your international businessterms right. Each term is distinct and has a specific meaning which define the scope anddegree of interaction with their operations outside of their "home" country. International …Read More [...]

10 08 2011khan (11:08:35) :thank you very much, comprehensive definitions,

22 09 2011Muhammad Tayyab Ejaz (01:56:44) :I was having a confusion between the term Multinational and internation. This informationis realy help ful.

24 09 2011nrusingha (19:13:22) :really very helpful for the students having their specialization in international business

24 10 2011Munna Kumar (00:29:56) :hi sir my name is Munna Kumar. I am the student of business management from Bangalore iwant to know about the history of international business.

26 10 2011sania khan (08:18:34) :thanks for this helpful material… plz would you add some examples and explanination..

23 11 2011Remo (11:03:46) :Thanks a lot to Lee and Andrew for these concise definitions. I’m from Perú.

27 11 2011Khine Thinzar Cho (22:08:00) :really helpful

1 12 2011Hooman (04:21:27) :Examples:Multinational companies as mentioned at the top have a base corporation or factory! in theirhome country and some other branches in other countries which all the decisions make atthe base company and other branches of the same company just obey the orders for exampleif we say Toyota is a multinational company then it has its base in Japan and in othercountries such as Malaysia or India products just assembles with the given plan to themfrom Japan.Transnational is like multinational but all other branches of company have the right todecision making like coca cola or McDonald which in some Arabian countries to eat pork isforbidden and branches of McDonald remove burgers with pork from their menu or makesome changes in integrates of them or we can say in some countries like turkey people preferdrinks with less sugar or in Dubai peoples cuisine is more sugar in drinks, so here branchesmake some changes in their products too keep their customers all around the world.

7 12 2011Udoka Raph (22:46:15) :


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I reall love this, and i want to say a big big thank you and i apprecaite. Keep it up.

10 12 2011Amyt (07:52:14) :differences given was really göod, but dnt u think its bit short.

20 12 2011Md. Sarwar Iqbal (21:37:07) :Nice but li le bit short to understand. Topics terminology is more or less critical. What everits not bad.

1 03 2012Get Global - Carrot Blog (09:15:30) :[...] international, transnational, or multinational company? They’re easy to confuse, butknowing the difference between them and knowing where your company falls will set thetone for all business decisions you [...]

6 03 2012muninder singh (07:08:16) :himy self is muninder and i am a student of instritute of company secretaries of india . i wantto know about the difference between international strategy and transnational strategy,,

21 03 2012sebastian (05:15:14) :thanx.u r full of integrity.

26 03 2012nabonita (00:00:20) :thanks a lot Mr Lee!

7 04 2012Juneid Ahmad SIddiqui (09:03:19) :Thank you Mr. Lee, Now my concept is clear, it is very useful for me.

13 04 2012Jesse (21:24:47) :I’m not an English native speaker. It’s hard for me to understand the difference betweeninternational, transnational and multinational. Your post is really helpful. Thanks a billion.I have one advice for you: explain them a li le bit more by giving some examples. I thinkgood examples can be Gucci, Volkswagen and Virgin Group.

10 05 2012Evelyn Lee (12:01:59) :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 indifferent country took affect?2. under what condition company choose PCN, HCN, TCN? What is the type of recruit andselection, training and development, reward. Explain each base on 3type, how performancemanagement carry in?

14 05 2012


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enrico (23:48:47) :very good and clear explanation, i’m aware of the definitions because of my elective subject“Corporate Governance” held during my MBA degree.

Enrico MasseiAssociate of Australian Migration & Legal Status Advice

19 06 2012Rakib - Bangladesh (00:55:03) :Thank you,i am also very grateful……

20 06 2012ranjit (02:53:24) :what is the 3 difference between multinational and trans multinational, overall bothorganization is same having footprint in other countries.

11 07 2012Peter (04:18:31) :Hey, firstly I appreciate your definition as given above but I would tend to think that thereneeds some clarity on the issue, because to me those look like strategies of doinginternational business if you look at it critically. I think it would have been more useful ifyou give the outreach and mode of operation. For example I am from Kenya and we havesome companies e.g East Africa Breweries ltd, Nakuma , Equity Bank etc, which operatewithin the East African region and qualify to be termed as MNC’S since according to thedefinition they do operate in more than one country. Would it therefore be right to say aMNC operates in more than one CONTINENT??? In the same breadth is there or are therecompanies referred to as REGIONAL companies which operate in a specific geographicalarea 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 betermed as a MNC. And if this is the case would a partnership in more than one country betermed as a MNC???

27 08 2012deep (02:43:36) :With example it could have been be er to understand…..

29 08 2012Glauco (12:17:16) :Thank you so much for sharing this information with us. Very helpful.

6 11 2012madhu bk (02:58:22) :Very useful information for any common people. thank u so much

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