Describe what is a Multinational Enterprise (MNE)

Describe what is a Multinational Enterprise (MNE) and transitional and the difference between these types of enterprises.Multinational Enterprise is a business that owns and controls the manufacturing of services or goods in more than one country other than its own, and has a centralized office that coordinates global management

A transnational corporation is a business that operates in more than one country and engages in global production of products and services, international investment, or economic resource management, and lacks a centralized system of management.

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Based on operational, Multinational corporations have branches in foreign countries, whereas transnational corporations do not have subsidiaries. In multinational enterprise, decisions are made in the home nation and should reflect in all the affiliates throughout the world. Transitional enterprises on the other hand, are responsible for making decision in an individual transitional. On local markets, multinational enterprises face difficulties when it comes to local markets because of their centralized systems of management. Transitional enterprises on the other hand, are entitled to make independent judgments on anything encountered on local markets. In other ways, if there is a probability of demand, branch offices in different countries can produce and manufacture products that are not made in the original home country unlike in multinational enterprises. The tactics for conducting business in multinational enterprises are conducted in both motherland and international markets while tactics in transitional enterprises are primarily developed from working zone by making adjustment to each country’s unique demand and culture.

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