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Multinational companies are not a recent phenomenon, but it is a fact that today because of modern and fast and efficient means of communications and transportation, companies and businesses find it easy to operate in many other countries apart from their parent country. It is customary to call such companies as multinational corporations. However, there is another word used for similar companies operating in more than a single country and that is transnational. This article tries to highlight the differences between multinational and transnational, in order to remove any doubt in the reader's mind about these two concepts.
There is no doubt that when a company grows at a rate faster than its products or services can be utilized by people in the home country, it tries to internationalize its business in anticipation of greater profits. Thus, when a company invests in Another Country besides its own and does business with another country, it is termed as a multinational. A single company can have operations in any number of countries. Today we have multinationals referred to as MNC's.
A different word has been coined to refer to corporations having a presence in more than a single country. Transnational is also a business entity having business operations in more than a single country, and many of the MNC's classify to be called as transnational.
The basic difference between a multinational and a transnational lies in the fact that transnational company is borderless, as it does not consider any particular country as its base, home or headquarters. Multinational companies, though having a parent country and a centralized decision making process, adopts a selling strategy that is unique to every other country where it has investments. This strategy is made keeping in mind the requirements of the local markets and the rules and regulations of the government. Often MNC's have to abide by sensitivities and culture of the local people.
Wiki User
∙ 7y ago
TNC stands for transnational corporation, which is a large company that operates in multiple countries. MNC stands for multinational corporation, which is similar to a TNC but typically has a centralized management structure and operates in a few countries.
Wiki User
∙ 14y ago"http://wiki.answers.com/Q/What_is_the_difference_between_TNC_and_MNC"
Wiki User
∙ 13y agospok
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Reason for the uneven development of resources all over the world?
an easy answer its basically just greed of the governments and the MNC/TNC's. That's it in a nut shell!!
What does TNC stand for and mean?
A transnational corporation (TNC) is almost the same as a multinational coorperation (MNC). It has its headquarters in one country and has offices or production units in several other countries. Transnationals locate in foreign countries to take advantage of tax incentives, cheap labour, favourable environmental laws, etc or to access a wider market
What makes primark TNC?
A multinational corporation (or transnational corporation) (MNC/TNC) is a corporation or enterprise that manages production establishments or delivers services in at least two countries. Very large multinationals have budgets that exceed those of many countries. Multinational corporations can have a powerful influence in international relations and local economies. Multinational corporations play an important role in globalization; some argue that a new form of MNC is evolving in response to globalization: the 'globally integrated enterprise'.i got this from yahoo answers by the way.
Is BP a TNC company?
yes BP is a TNC company
Why did Sony become a TNC?
Sony became a Transnational company, also known as TNC, in 1975. It became a TNC when Sony stocks started publicly trading.
Is wipro a MNC?
ofcourse it is a mnc.....!!
What are the advantages of being a TNC?
i got 99 problems but tnc's aint one! hit me!
Why did pepsi become TNC?
Pepsi became a TNC because it was firat based in M
Is Raymond an mnc?
jobless huh!! MNC?
Does Reliance industry is an MNC or not?
relianc is mnc or not
Is Lakme an MNC?
Yes, Lakme is a multinational brand. It is a subsidiary of Hindustan Unilever Limited (HUL), which is a part of the multinational consumer goods company Unilever. While Lakme originated in India, it is now recognized internationally and has a presence in various countries around the world.
Challenge of compensation management in MNC?
Challenges of MNc
