Difference Between an MNC and an International Business?

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In today’s world of growing entrepreneurship and startups, the words business, companies, CEO, and so on have become very popular.

People who are already growing and expanding their businesses must want to know more about how to develop their businesses further, sometimes even overseas.

There are words that are used in daily life interchangeably but people do not understand the correct usage. One such pair is a multinational corporation and an international business.

So what is the difference between a multinational corporation (MNC) and an international business?

In this article, we will create out all the doubts that you must have. So let’s not waste any time and dwell on the information further.

Difference Between an MNC and an International Business?


Basically, both the words international and multinational refer to including or involving several countries or nationalities.

The main difference between international and multinational is that the word international is used in a general context while the word multinational is mostly used in a business context.

International Business 

International when we are referring to more than one country. International law means a law agreed on by all or many countries. International trade is the exchange of goods carried between countries.

An international team refers to a team made up of people of different countries. The Olympics, where competitors from all over the world participate, is an international event.

International Companies can be defined as an international company is an organization that has business operations in several markets across the globe. The company may have its headquarters in one central location, but its subsidiary offices in each of the countries it operates in.

Multinational Business

source: Getty image

Oxford Dictionary defines multinational as an adjective meaning “Including or involving several countries or individuals of several nationalities.” For instance, look at the sentence, “The UN has sent a multinational peace-keeping force.”

Here the usage of multinational indicates that the peace-keeping force included people from several countries or of several nationalities.

However, the term Multinational is mainly used in the corporate, business world. Multinational refers to a business that operates in several countries.

Multinational Company refers to Multinational corporation or worldwide enterprise is a corporate organization that owns or controls production of goods or services in one or more countries other than their home country.

The term Multinational companies refer to having investments in other countries but do not have coordinated product offerings in each country.

They are more focused on adapting their products and services to each individual local market. Coca-Cola, Nike, McDonalds Corp., Google and Fedex are some examples of multinational companies.

The term, International companies, refer to  importers and exporters, they have no investment outside of their home country.

Let us be more clear about these phrases in terms of definitions and context.

Difference Between International Business and Multinational Corporation

source: Getty image

Here we have mentioned some major points of how  MNC and International businesses are different:


International business means business Existing, occurring or carried on between nations.

Multinational corporation means business Including or involving several countries or individuals of several nationalities.


International is used in many contexts.

Multinational is mostly used in a business context.


An International company does not have investment outside the home country.

A Multinational company has investments in other countries.

To expand further, a word that stands for one which occurs exists, or is carried between different nations is known as international whereas, a word that stands for those which involves different individuals of several nationalities or several countries is known as multinational.

An international company never invests outside the home country. Conversely, multinational companies have investments in many countries, but they do not deal with coordinated products in each country.

To make it more simple, let us understand it with the help of an example.

An example of the correct use of the word “international” is, “Ali is working in a large, international restaurant.” On the other side, an example of correct usage of the word “multinational” is “Ali is the CEO of a multinational corporation.”

Sometimes these terms are also confused with global companies and transnational companies. Now, these are shortly described below for your convenience.

Global companies also have locations in multiple countries, but they’ve figured out how to create one company culture with one set of processes that facilitate a more efficient and effective single global organization.

Transnational companies are much more complex organizations.

It’s a commercial enterprise that operates substantial facilities, does business in more than one country, and does not consider any particular country its national home.

One of the significant advantages of a transnational company is that they are able to maintain a greater degree of responsiveness to the local markets where they maintain facilities.

Hope you found this article informative. Please feel free to share any thoughts and opinions and write it down in the comments section below.

Thank you!

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