Difference Between TNC and MNC

There are millions of corporates around us, which are still striving to reach their pinnacle. Besides, each corporate has been classified based on its geographic structure.

/10

Business Quiz

Test your knowledge about topics related to business

1 / 10

Working capital means _________.

2 / 10

When an existing company offers its shares for sale to the existing shareholders, it is known as ___________.

3 / 10

What is an Economic Activity?

4 / 10

The method of evaluating the efficiency of workers is termed as _________.

5 / 10

Which of the following speculators expect fall in the prices of securities in the near future?

6 / 10

Modular furniture __________.

7 / 10

When at least 51% shares are in the hands of government, it is called as __________.

8 / 10

A partner in a firm _____.

9 / 10

The return of shares to the company is known as ___________.

10 / 10

Whose Liability is limited to the extent of his capital to the firm?

Your score is

0%

TNC vs MNC

The difference between TNC and MNC is that the MNCs have home companies as well as their subsidiaries. Meanwhile, TNCs don’t have any subsidiaries but companies. In addition to that, one has a centralized management system, while the latter doesn’t. 

TNC vs MNC

TNC is the abbreviation of Transnational Company. They are often differentiated from MNC based on their trading with more than one country except for their homeland.

On the other hand, the Multinational Company is the acronym of MNC. It is the pacemaker for companies in more than one country, including its homeland also.

Comparison Table

Parameters of ComparisonTNCMNC
Meaning Transnational Corporation is a decentralised enterprise that subsumes its production of goods and services, Fx or any investments with more than one country. TNC set its network in developing countries for cheap cost of production. Multinational Corporations is a centralised company that runs the production of goods, services, investment and management in its home country as well as in other countries. 
History TNC incipient in the 16th Century in Western Europe. Later in the 19th Century, TNC emerged widely in the field of industrial capitalism, where burgeon involvement by many companies mainly in the US and Western European nations.In 1601, the East India Company emerged as Multinational Company-trading goods and services globally. Later in 1603, the Dutch East India Company was twin MNC to the East India Company.
Headquarters TNC Headquarters doesn’t locate in its home country but in some other developing country where production occurs.MNC main Headquarters located in its home country- where the production of goods began initially. 
Structure Transnational corporation follows decentralised structure-  the corporation operates in numerous countries where goods and services are produced.Multinational Corporation is a centralised management structure, where the home country is considered the main headquarters- while operating other countries for production.
ExamplesA renowned company Nestle is a Transnational company that runs its operations in more than one developing countriesMicrosoft. Coco-Cola, IBM and Apple etc. are the renowned Multinational companies in the world. 

What is TNC?

As earlier mentioned, Transnational companies are decentralized and capable of burgeoning their revenue in contact with local markets rather than having any specific homeland for themselves.

Their strategic ideas are much appreciated as they target economically developed countries for commerce in a way to merit cheap labor for better production.

TNC has been a globally operated corporation whose only jackpot is the dynamic flux of foreign investments around their headquarters.

Other examples of TNC are McDonald’s, Apple, Starbucks, and you name it, which companies have a globally engrossing contribution with no official motherland. 

tnc

What is MNC?

MNC is an abbreviated form of Multinational Company. It owns a home company as well as its subsidiaries, unlike TNC, which only owns many companies around the globe.

Due to emerging globalization, they were often criticized for inequality, unemployment, tax avoidance, and wage stagnation among non-natives.

However, they had brought in the best raw materials from abroad to their homeland. Microsoft company is a good example of MNC, as they lend their trade in foreign lands, such as India, with its headquarters in America.

mnc

Main Differences Between TNC and MNC

  1. TNC doesn’t have any specific headquarters and runs operations in various developing countries. Albeit, MNC has its Headquarters in its home country and guides its operations in more than one country.
  2. According to marketing, TNC sets its subsidiary companies in developing countries for the low cost of production, whereas MNC sets its auxiliary company at least one country which has a consumer price index high. 

References

  1. https://books.google.co.in/books?hl=en&lr=&id=ztTH_USwrWwC&oi=fnd&pg=PR1&dq=transnational+corporations&ots=UwP7SR5wx1&sig=RYPVXlR9pMlQO9SpYLaDduNaCn4
  2. https://www.jstor.org/stable/1815843
One request?

I’ve put so much effort writing this blog post to provide value to you. It’ll be very helpful for me, if you consider sharing it on social media or with your friends/family. SHARING IS ♥️