International Company

It is an off-shore company formed under the laws off special jurisdiction as a tax free company
which is not which is not permitted to engage in business within the jurisdiction it is incorporated
in. It is commonly used for offshore banking to conduct international trade, investment activities,
by professionals and for asset protection. It could also be involved in buying and selling of goods
and services. International company are not authorized to do business in the country of formation
but can have offices that manage global operations. In addition to the usual benefits accruing
from incorporation , international company also enjoy banking and corporate secrecy, rapid
formation, low cost, little or no taxation, and minimal filing and reporting requirements. Some
tax havens also allow nominee shareholders and directors. International companies are importers
and exporters; they have no investment outside of their home country.

Multinational Corporation (MNC)

Enterprise operating in several countries but managed from one country. Generally any firm or
group that derives a quarter of its revenue from operations outside its home country is considered
to be a MNC and may fall in one of the following categories:

• Multinational, decentralized firm with strong home country presence

• Global, centralized firm that acquires cost advantage through centralized production
where cheaper resources are available
• International, firm that builds on the parent firm’s technology and R&D
• Transnational, firm that combines the previous three approaches.

Multinational companies have investment in other countries, but do not have coordinated product
offerings in each country. More focused on adapting their products and service to each individual
local market.

Global Company
Global companies have invested and are present in many countries. They market their products
through the use of the same coordinated image/brand in all markets. Generally one corporate
office that is responsible for global strategy. Emphasis on volume ,cost management and
efficiency.A global company:
- has a global strategy
- treats all its activities in the context of a whole-world system
- serves global customers with excellence
- has a business delivery system highly sensitive to local customers needs
- serves local customers with excellence

Transnational Company
A Transnational Company (TNC) differs from a MNC in that it does not identify itself with one
national home. Whilst traditional MNCs are national companies with foreign subsidiaries. TNCs
spread out their operations in many countries sustaining high levels of local responsiveness.] An
example of a TNC is Nestlé who employ senior executives from many countries and try to make
decisions from a global perspective rather than from one centralized headquarters. Transnational
companies are much more complex organizations. They have invested in foreign operations,
have a central corporate facility but give decision-making, R&D and marketing powers to each
individual foreign market.

VARUN MEHROTRA

MBA-IB

ENR :( 740210057)