Differentiate between a global company and a multinational company.

Answer:

The following are some of the difference between the global and multinational company;

1.  A multinational corporation produces goods and services and has outlets and offices in many other countries while in a global company, the business usually has a trade relation with other nations. 

2.  The multinational corporations often pay the local workers a salary that is at a lower rate while in global companies, the local employees are paid high salaries. 

3.  The multinational corporations usually have official headquarters whereas the global companies do not have the official headquarter since the business is a trade with other several nations. 

4.  The multinational companies usually adapt their products to suit the needs of the host countries while the global companies sell the similar (same) products with their characteristics images in different countries. 

5.  Multinational corporations usually have investments in many countries, but they do not have the coordinated product offered in each country while the global companies market their products through the use of the same coordinated image or brand in all countries. 

6.  Multinational corporations have decentralized operations with very little communication among the division this makes the local countries to interfere with the multinational companies marketing strategies while the global companies integrate all its units and emphasize its marketing plans on the worldwide scale making it difficult to be affected by the local countries. 

7.  Global companies have a regular pyramid-like structure while multinational companies have a matrix structure. 

8.  Multinational companies focus on the adapting their goods and service to the individual local market, for instance; a Suzuki is a multinational company with a special Maruti Suzuki for Indians and other different brands for other countries. The global companies emphasize on volume, cost management and efficiency in the production in all parts of the world. For instance, Apple is a company with the same product regardless of the market. 

9.  The common challenges of the are the common international legal issues, Intellectual property Right issues while in the common problems with the global companies are regulatory issues, legal issues. These companies also miss the local touch since they follow the uniform product type across different countries. 

10.  In the multinational company, the product development is usually obtained from the parent company and then distributed to the various secondary companies while in the global companies, the subsidiary companies are allowed to participate in the production of goods and services. However, the final product development takes place at the headquarter of the original company's country.