What is the difference between transnational and multinational?
Sometimes large manufacturing companies have had global presence and called as MNCs or multinational corporations. Transnational is used in different way
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.
-Transnational corporations are a type of multinational corporations.
-MNC have an international identity as belonging to a particular home country where they are headquartered. On the other hand, transnational corporations are more or less borderless in this regard as they do not consider a particular country as their base.
-Multinationals have branches in other countries, whereas transnational have subsidiaries.
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