Difference between transnational companies and multinational

companies

Despite these types of corporation are not of recent creation, their names are
frequently interchanged as they seem to be pretty similar. As these terms
suggest, both transnational companies (TNC) and multinational companies
(MNC) are companies trespassing national boundaries, having presence in
many countries of the world.

Both MNC and TNC are types of international corporations that started in one
specific place (home country) and work to expand their operation all over the
world (host countries). They are commonly dedicated to industrial activities
such as manufacturing, oil mining, agriculture, consulting, accounting,
construction, legal, advertising, entertainment, banking, telecommunications
and lodging.

Although their multiple similarities, there are a few differences that can be
mentioned in order to distinguish both concepts. These are described in the
table below:

TNC MNC
Identity TNC are borderless. No MCN keep the identity of
country is consider its the home country all over
home or headquarter. Each the world.
office operates as

Management There is not a centralized They operate under a

system management system. centralized management
system. Offices all over the
world are ruled as
mandated by the home
country, which consider
 each country’s regulations
and requirements in their
decision making process.
Presence in They don’t have They have subsidiaries in
other countries subsidiaries, but branches other countries.
or many companies in
other countries.
Local response They have a unique selling The home company adopts
and selling strategy in every country, their selling strategy to local
strategy gaining a better local requirements and
response. regulations for their
subsidiaries.
Business model A transnational company Their goal is to adapt and
invest in foreign coordinate products and
operations. That means service offered by the home
each individual foreign country in every host
market is responsible for country.
their own decision-making,
marketing powers,
research and development.
Examples Shell, Accenture, Deloitte, Unilever, Proctor &
Glaxo-Smith Klein, and Gamble, Mc Donald’s and
Roche Seven-Eleven
Coca-Cola is an example of Multinational companies

Some example of transnational companies