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MNCs and TNCs are enterprises or corporations, which manage production establishments and deliver services in more than one country. They have a huge influence on local economies and international relations. They play a vital role in globalization.

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What are MNCs and TNCs?

MNCs or Multinational corporations are big companies that perform business operations in many states. Though TNCs or transnational corporations are considered to be synonymous with MNCs, they differ in many regards. MNCs are truly global and they operate across borders without any emphasis on a single nation. 


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These companies are dominated by parent companies mainly in the developed nation through which they do their research and they repatriate profits. TNCs are corporations that operate in other nations other than their own country. They do not have any centralized management system. The decisions are made for suiting the operations. As there is no centralized management system, similar firms functioning in other nations cannot be said to be subsidiaries. They are not loyal to the value system of the operating country, however, focus on business expansion.

Similarities Between MNCs and TNCs

Both MNCs and TNCs have their head offices in one nation and they perform business and function in several other countries. The head office country is called the home country and affiliates are called host countries. The similarities are discussed in our  MNCs and TNCs assignment help online:

  • Both are huge in budget and highly influential to environmental, economic, and globalization lobbying in many countries.
  • Both have production and local services and thus affect the standard of living, employment, and household incomes.
  • The common industries in both MNCs and TNcs are manufacturing, consulting, banking, construction, etc.

The Differences Between MNCs and TNCs

  1. Definition: A Multinational is a corporation, which has assets and liabilities in more than one country. It has a centralized office and global management happens here. Transnational, on the other hand, is a corporation that operates in other nations besides the home country and they do not have any centralized management system.
  2. Operations: MNCs have subsidiaries in other nations, transnationals do not have subsidiaries in other nations.
  3. Local markets: MNCs do not face restrictions regarding local markets as they have a centralized management system. TNCs can make decisions independently depending on local markets.
  4. Decision-making: Decision-making in MNCs is made in the home country and it is affected in other subsidiaries. TNCs, on the other hand, decision-making is done by separate corporations.


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Merits of MNCs and TNCs

The merits are discussed below in our MNCs and TNCs homework help service as follows:

  • They provide huge investments and resources, innovation, technology, and expertise in host countries.
  • They influence a professional culture and environment for local companies to emulate thus promoting sound business and management education.
  • Large-scale economies, healthy competition, and quality control result in price cuts and other advantages to users.
  • They improve the infrastructure and make p[rovision for needs in their local areas. They improve business conditions.
  • They promote cross-border communication among people.

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