The External Business Environement - Advanced Higher Business Unit 1

Multinational Company

A multinational company (MNC) is one that manages productive operations or delivers services in at least two countries.It has a centralised head office in its home country where it coordinates its global management

Transnational Company

A company operates on a global basis but has no clear head office in any of the countries in which it operates. However the term multinational is often used to describe both types of company.

Balance of Payment

It is a financial statement that summarizes all economic transactions between residents of a country and the rest of the world over a specific time period. It includes the trade balance, foreign investments, and financial transfers, reflecting a country's economic position.

Organic Growtth

Organic growth refers to the expansion of a company through its own resources and efforts, rather than through mergers, acquisitions, or takeovers. This growth can be achieved by increasing sales, enhancing product offerings, expanding into new markets, or improving operational efficiency. It emphasizes building a sustainable business model and leveraging existing assets to drive revenue growth.