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Difference Between International, Multinational and Global Companies

The document discusses the differences between international, multinational, and global companies. International companies only import and export goods and have no investments outside their home country. Multinational companies have investments in other countries but market products individually to each local market. Global companies invest and operate in many countries using consistent branding worldwide and centralized global strategy from one main office.

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shaikh javed
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72 views

Difference Between International, Multinational and Global Companies

The document discusses the differences between international, multinational, and global companies. International companies only import and export goods and have no investments outside their home country. Multinational companies have investments in other countries but market products individually to each local market. Global companies invest and operate in many countries using consistent branding worldwide and centralized global strategy from one main office.

Uploaded by

shaikh javed
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Difference between International,

Multinational and Global Companies


International companies are importers and exporters, they have no investment outside of their
home country.
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. Such as Suzuki is a multinational which has Maruti Suzuki for Indian and some other
markets.
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. An example of
global company is Apple which has the same products irrespective of the market. The product are same
in US, India, UK or any other country of the world

Domestic firms operate mostly or completely within the United States. They may
import supplies or export products, but these activities normally represent a
comparatively small share of total business activity. Domestic companies are
typically governed by U.S. securities laws. Their financial reports are normally
constructed according to Generally Accepted Accounting Principles (GAAP).
International firms are headquartered in the United States but maintain significant
investments outside the country and have geographically diverse profit centers.
U.S. operations and parent company governance are typically determined by U.S.
laws, and parent company accounting normally follows GAAP. But non-U.S.
subsidiaries may be governed according to policies dictated by their host
countries. Accounting structures in many jurisdictions outside the United States
are determined by the International Financial Reporting Standard (IFRS). Any
specific differences in accounting or governance between foreign subsidiaries and
U.S. parent companies should be disclosed in the parent-company financial
reports.
Global firms have significant investments and profit centers in many countries,
with no single center of dominance. Governance rules for global firms are
generally determined by the laws of the official domicile of the parent company.
Some global firms create financial statements according to GAAP for U.S.
investors, but more commonly, primary parent-company reports adhere to IFRS.

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