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Difference between Global Co., International Co., Index Numbers Of Wholesale Price In India (Base:
2011-12=100) Review For The Month Of November,
Multinational Co., Transnational Co. and Multidomestic Co. 2017
With the Globalization of trade between the countries, many a companies across the world have come Customs (Furnishing Of Information) Rules, 2017 -
forward to sell their products and/or render services not only in their domestic country but also in Notified
different foreign countries. This has opened up whopping opportunities for these companies to go
global, grow and diversify. [DGFT] Application Fee For Grant Of Import
Authorization
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GLOBAL COMPANY
Operations & Trading: Any Company, which is having operations and trading
in many countries across the world is called as a Global Company. Generally, Follow us at Instagram
the number of countries in these cases, would be quite high, lets say atleast
around 15-20+ countries.
Strategy: In most of the Global companies, the organization structure and key
decisions making functions have a "Centralized" approach i.e the major
decisions on the organizational approaches /changes are taken from the
headquarter of the company. These major decisions are like merger and
amalgamation, new products launching, etc.
Operations & Trading: International companies are the companies, who sell its
products in foreign countries by exporting it to those countries and they might
also be involved in various importing activities. These companies do not have
their own establishments in foreign countries.
Strategy: As these companies do not have any foreign set up or branches, the
key decision making functions is always taken from the domestic country of the
company.
Challenges: Legal, regulatory and customs issues are the key bottlenecks for
these companies. Also, in cases where the taste of products in some of the
countries does not match, these company may run the risk of failures.
MULTINATIONAL COMPANY
Operations & Trading: Any Company, which is having operations and trading
in two or more countries across the globe is called as a Multinational Company.
Generally, the number of countries in this cases, would be in the medium range
- from two to ten.
TRANSNATIONAL COMPANY
MULTIDOMESTIC COMPANY
Operations & Trading: These type of companies are almost similar to the
Transnational companies. These companies have branches and establishments
across many countries in the world.
Investment: Multidomestic companies mostly have foreign direct investment
(FDI) in some of the foreign countries where they operate in.
Products / R&D: Subsidiary companies at different countries are also given the
rights to develop product as per the local taste and demands.
Also, it has been seen that some of the companies who have operations in
different countries refer themselves (even in public) as any of the above said
four category of company without going deep into various aspects which would
really put them in the right category of company. Most of the time the confusion
arises between global, multinational and international company.
Though the meaning of all these companies are almost similar to Universal
Company or Worldwide Company, but they are hardly referred to by these
names. Hence, it is better not to refer by these names.
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