TNC is Transnational Company. The definition of transnational company. 1. Structural Criterion refers to the geographical area across which the enterprise engages in production and business activities and the ownership of enterprise assets as the standard and scale for classifying transnational operations.

J. H. Dunning, a well-known British expert on multinational corporations, believes that a multinational corporation “simply puts it simply means one that owns or controls production facilities (such as factories, mines, refineries, sales agencies, offices, etc.) in more than one country.

enterprise".

This is the loosest definition so far, but some scholars have pointed out that multinational companies generally should have a fairly wide geographical distribution. For those companies that only have subsidiaries in one or two countries outside their home base, they generally cannot be called multinational companies.

From the perspective of enterprise ownership, it is generally believed that an enterprise can constitute a multinational company only if it has share ownership of foreign enterprises.

The Organization for Economic Cooperation and Development believes that transnational corporations "generally include companies or other entities whose ownership is private, state-owned, or public-private partnerships."

Regarding the standard for ownership of foreign enterprise equity, the authoritative standard commonly used at present is that proposed by the International Monetary Fund. The reasonable standard for multinational companies to control the ownership of overseas enterprises shall not be less than 25%.

2. Performance Characteristics Criterion means that the overseas assets, profits, sales, output value and number of employees of an enterprise must reach a certain percentage in the entire enterprise business before it can be called a "multinational company".

As with ownership standards, Western scholars generally agree on a 25% overseas business share.

Regarding the commonly used sales indicator, one view is that only those with a turnover of more than 100 million US dollars can be called a multinational company. The representative figure is Raymond Vernon from the United States. He believes that "sales are less than

Companies with an annual sales volume of US$1 billion are not worthy of attention.” Another view is that a 1993 document from the United Nations Conference on Trade and Development believes that only companies with annual sales of more than US$1 billion can be called multinational corporations.

3. Behavioral Characteristics Criterion means that multinational companies should implement a global business strategy. The company's top decisions should be based on the company's overall interests and aim at maximizing profits on a global scale, rather than being limited to the profits and losses of a certain regional market.

American economist Howard Perlmutter believes that whether a company can grow from a domestic company to a multinational company in a strictly modern sense must rely on the orientation of its strategic decision-making as an important criterion. Only those companies that have achieved a global orientation strategic decision-making

Only companies that implement global systematic decision-making can be called true multinational companies.

The draft "United Nations Code of Conduct on Transnational Corporations" formulated by the United Nations in 1986 defines transnational corporations as: "The term transnational corporations as used in this Code refers to entities composed of two or more countries.

An enterprise composed of public, private or mixed ownership, regardless of the legal form and field of activity of such entities; which operates under a decision-making system with coherent policies and policies within the enterprise through one or more decision-making centers

* A common strategy is achieved; the various entities in the enterprise are combined through ownership or other means so that one or more entities can effectively influence the activities of other entities, especially sharing knowledge, resources and knowledge with other entities.

Responsibility. "To sum up, as a complex economic form, multinational corporations have various definitions due to different definition standards.

In order to further clarify the basic connotation of multinational corporations, the United Nations Center for Transnational Corporations clearly pointed out in a 1983 research report that multinational corporations should include three basic elements: First, including entities located in two or more countries, regardless of whether these entities

What is the legal form and field of the entity? Second, it operates within a decision-making system and can adopt consistent countermeasures and common strategies through one or several decision-making centers. Third, each entity is connected through equity or other means, one of which

One or more entities may exert significant influence on other entities, especially sharing knowledge resources and responsibilities with other entities.

After the 1980s, the international community has basically reached a common understanding of the three major elements of the definition of multinational corporations proposed by the United Nations.