Global Companies and TNC

International corporations have several categories depending on the business structure, investment and product/ service offerings. Transnational companies (TNC) and multinational companies (MNC) are two of a these categories. Both MNC and TNC are enterprises that manage production or delivers services in more than one country. They are characterized as business entities that have their management headquarters in one country, known as the home country, and operate in several other countries, known as host countries. Industries like manufacturing, oil mining, agriculture, consulting, accounting, construction, legal, advertising, entertainment, banking, telecommunications and lodging are often run through TNC’s and MNC’s. The said corporations maintain various bases all over the world. Many of them are owned by a mixture of domestic and foreign stock holders. Most TNC’s and MNC’s are massive with budgets that outweigh smaller nations’ GDPs. Thus, TNC and MNC alike are highly influential to globalization, economic and environmental lobbying in most countries. Because of their influence, countries and regional political districts at times tender incentives to MNC and TNC in form of tax breaks, pledges of governmental assistance or improved infrastructure, political favors and lenient environmental and labor standards enforcement in order to be at an advantage from their competitors. Also due to their size, they can have a significant impact on government policy, primarily through the threat of market withdrawal. They are powerful enough to initiate lobbying that is directed at a variety of business concerns such as tariff structures, aiming to restrict competition of foreign industries. Some of the top TNC’s and MNC’s are General Electric, Toyota Motor, Total, Royal Dutch Shell, ExxonMobil and Vodafone Group.

A transnational is just another name for a multi-national. The fashion term transnational still does not remove the requirement for a country to report to a parent company somewhere; there will always be an ultimate parent. In a structure, any amount of subsidiaries will roll up through the group structure to a head office.

A transnational is just another name for a multi-national.

There can be many regional head offices in a structure. Companies are residents through the structure to the ultimate ownership of the company and where the parent files its tax returns.

There are many differences between TNC and MNC. Though they are both abbreviations, they both stand for two different things. TNC stands for transnational companies. MNC stands for multinational companies. Both of them operate in different countries. TNC’s does business in a variety of different companies.

Their companies are richer than many less developed countries. Some of these companies include BP, Amoco, and Nestle. Multinational companies operate in two or more countries that are different than their own. Examples of those companies include Acer and Adidas. TNCs offer foreign operations. MNCs will invest in other countries, but they do not offer or coordinate products.

In order to understand these two, it is important to know what they both mean. When you say TNC, this means transnational company. When you say MNC, this means multinational companies. A lot of people assume that TNC and MNC are the same, probably because they have a lot of similarities.

There are some differences, as well. For example, TNC is known to be some sort of enterprise or a large corporation that will have the ability to control its company even if the company is placed in a different country. MNC will also have some stores in other countries, but they will have no say if in case there are some differences with the items that are being offered.

TNC and MNC are often compared to each other because most people assume that they are one and the same. It should be remembered that MNC stands for the multinational company while TNC stands for transnational companies. Take note that both of these enterprises are known to offer their products and services outside their usual country.

For the multinational company, this comes with a home company plus the different available subsidiaries. A transnational company will not have subsidiaries but will probably have different companies that can be spread out in different locations. Multinational companies also follow a centralized management system, while a transnational company will not follow a centralized system.

TNC stands for Trans-National Corporation while MNC stands for Multi-National Corporation both have many similarities. Both corporations usually have their headquarters in one country, and they do business and operate in many other countries. The headquarter nation is known as the home country, and other affiliates are known as host countries.

The significant difference between these two corporations is that MNC usually has an investment in other countries but do not coordinate product offering. TNC has operations in foreign investments. It gives each foreign market its marketing power.