Differentiate between Transnational corporations and Multinational corporations.

A multinational corporation (MNC) has facilities and other assets in at least one country other than
its home country. Such companies have offices and/or factories in different countries and usually have a
centralized head office where they coordinate global management. Very large multinationals have
budgets that exceed those of many small countries. While Transnational corporations (TNC) is a
commercial enterprise that operates substantial facilities, does business in more than one country and
does not consider any particular country its national home.

5 advantages of Multinational corporations

 Multinational corporations are often responsible for today’s best practices.

 Innovation happens because of the investments made by multinational corporations.
 The world has more cultural awareness because of multinational corporations.
 Multinational companies focus on consistency for the consumer.
 Diversification becomes possible because of multinational corporations.

5 disadvantages of Multinational corporations

 Multinational corporations can use their structure to form monopolistic markets.

 Because of their size, multinational corporations put SMEs out of business.
 Multinational corporations often take advantage of the international standard of living.
 Political corruption typically rises with the influence of a multinational corporation.
 Multinational corporations can cause harm to the environment.

5 advantages of Transnational corporations

 Economic impact
 Increase employment rate
 Technology contribution
 Enhancement of export
 Generation revenue to developing countries

5 disadvantages of Transnational corporations

 Labour exploitation
 Removal of capital
 Economic recession
 Outflow of wealth
 Outside decision making