Question

what are the differences between international company, global company, transnational company and multi domestic company and give example for each company.

Answer 1

International Companies are importers and exporters, they have no capital outside their country of origin. International companies do not have foreign direct investment (FDI) and only in their home country do their product or service. We are, in other words, exporters and importers. They don't have any foreign staff, warehouses, or sales offices. Exotic retail shops selling imported products or small local manufacturers exporting to neighboring countries are the best examples of international companies, in the strict sense.

Global companies also have locations in multiple countries, but they have created a single corporate culture with a collection of processes that promote a more efficient and effective single global organization. Global companies invest in dozens of countries, but have a large headquarters in one, typically their home country. Their philosophy is economies of scale, and in order to keep costs low they must homogenize goods as much as the market will allow. In an attempt to iron out variations in local tastes and preferences, their marketing campaigns also cover the globe with one message (although in different languages).

Transnational corporations are companies that are much more nuanced. It is a commercial enterprise that operates large-scale facilities, operates in more than one country and does not find any country to be its national home. One of a transnational company's significant advantages is that it can achieve a higher degree of sensitivity to local markets where it maintains facilities. Transnational corporations are often very complex and very hard to manage. We invest directly in dozens of countries and experience severe pressure to reduce costs as well as local sensitivity. While these organizations may have a global headquarters, they also delegate decision-making power to different national headquarters and have devoted R&D activities to various national markets.

Multidomestic Corporation- A multidomestic organization is a multinational corporation working on a system of regional management. The multinational corporation decentralizes instead of centralizing and taking all decisions from one primary location. This requires the decision making to be taken by executives, presidents or their counterparts and others in the country of service. This system is called "multidomestic" because it relies on transferring substantial management and administrative powers to the countries in which they work.