Multinational Company

X
Global Company

MULTINATIONAL COMPANIES

GLOBAL COMPANIES

Multinational Company X Global

Company
A multinational corporation, or MNC, is a company
which produces goods and services and has offices in
several other countries while a global corporation or
company is a company which also has trade relations
with several other countries.
MNCs usually pay local workers a lower salaryratethan
global companies.
MNCs have official headquarters while global companies
do not.
Global companies sell the same product with their
characteristic image while MNCs adapt their products to
the needs of the host countries.

Franchising
X
Licensing

FRANCHISING

LICENSING

Franchising X Licensing
Governed by Securities law

Contract law

Registration Required

Not required

Territorial rights Offered to franchisee

Support and training Provided by franchiser

Royalty payments Yes

Not offered; licensee can

sell similar licenses and
products in same area
Not provided
Yes

Use of trademark/logo Logo and trademark

retained by franchiser and
used by franchisee

Can be licensed

Examples McDonalds, Subway, 7-11,

Dunkin Donuts

Microsoft Office

control Franchiser exercise control

over franchisee.

licensor does not have

control over licensee

These Are the 10 Most Valuable

Companies in the Fortune 500
1. Apple

Computers, Office Equipment 534B

2. Alphabet Internet Services And Retailing

507B

3. Microsoft Computer Software 413B

4. Exxon Mobil Petroleum Refining 326B
5. Facebook Internet Services And Retailing

321B

6. Berkshire Hathaway Insurance 312B

7. Johnson & Johnson Pharmaceuticals 288B
8. General Electric
9. Amazon.com

Diversified Financials 271B

Internet Services And Retailing

10.Wells Fargo Commercial Banks 242B

250B