MULTINASYONAL (Tagalog)

This word is from the Spanish multinacional.

mul·ti·nás·yo·nál

multinásyonál
multinational

The adjective “multinational” means of or involving more than two countries. A multinational project means having operations, subsidiaries, or investments in more than two countries.

mga multinasyunal na kumpanya
multinational companies

A multinational is a company or corporation operating in more than two countries.

The main difference between transnational and multinational corporations lies in their organizational structure and approach to global operations:

Multinational Corporations (MNCs)

Operate in multiple countries but maintain a centralized management structure
Have a clear headquarters in the home country that coordinates global operations
Subsidiaries in different countries function relatively independently
Decision-making is typically centralized at the headquarters
May adapt products/services to local markets, but core strategies come from the central office

Transnational Corporations (TNCs)

Operate globally with a highly integrated and decentralized structure
No single country is considered the corporate home or central headquarters
Maintain multiple bases across countries with substantial local autonomy
Decision-making is decentralized, with each regional office having significant authority
Highly responsive to local markets, with the ability to develop products specifically for regional needs

Key Distinctions

Integration: TNCs are more globally integrated, while MNCs operate more as a collection of national subsidiaries
Centralization: MNCs have centralized control, while TNCs are more decentralized
Local responsiveness: TNCs are generally more adaptable to local markets than MNCs
Global strategy: TNCs aim for a unified global approach, while MNCs may have varying strategies per country

In essence, transnational corporations represent a more complex and flexible organizational model compared to the traditional multinational corporation structure, allowing for greater local autonomy while maintaining global coordination.