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Multinational companies (MNCs) operate in multiple countries but typically maintain a centralized management structure, with a strong focus on their home country. In contrast, transnational companies (TNCs) have a more decentralized approach, allowing for greater autonomy in their foreign operations and adapting strategies to local markets. This flexibility enables TNCs to leverage global efficiencies while also responding to regional needs more effectively. Both types of companies play significant roles in the global economy, influencing trade, investment, and employment across borders.

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