Question: - Define Multinational Corporations. How international Marketing is is different from Domestic Marketing?

Answer: - An organization working in several countries but managed from one (home) country. Generally, any corporation or group that originates a quarter of its revenue from operations outside of its home country is known a multinational corporation. Multinational firms occurs because capital is much more mobile than labor. Since cheap labor and raw material inputs are located in other countries, multinational firms establish subsidiaries there. They are often criticized as being runaway corporations.

Economists do not agree as to how multinational or transnational corporations should be defined. Multinational corporations have many dimensions and can be viewed from several perspectives (ownership, management, strategy and structural, etc.)

1.       International marketing is facing a more difficult market situation. Domestic marketing is conducted in this country and so faced parallel structure of the market environment is comparatively simple, which consists of those factors that are more common to companies -- the domestic political, economic, legal, and cultural and so on. However, International marketing is facing a more complex atmosphere; it is a market with multi-level formation. This is because those corporations, who engage in international marketing, will inevitably be subjected to the world market environment. Which requires organizations to face the world market environment, including the world’s political, military, economic, technological and other aspects?

2.       International marketing is facing more fear factors. The opposition between subjective understanding and objective authenticity, attached with the unpredictability of the objective procedure, international marketing faced more uncertainties factors for the organizations .Compared with domestic marketing, it is more complex to make sure the overall demand, purchasers and competitors and more difficult to study and forecast wholesale sector, retail composition, buying behavior in international marketing.

3.        International marketing is facing more different selection of marketing programs Companies in the domestic market, although also need to deal with diverse areas and different programs for different target markets, different strategies, and even the use of different promotions, but the overall program is the same however. the international market is a market composed of different countries .companies in the international marketing, its marketing programs are of variety, Enterprises in different country markets to trade their products, not joined marketing program, and must host country market, different scenarios were developed.

4.        Marketing in international marketing is more difficult besides the difficult surroundings and the uncertain factors, diverse selection programs, international marketing have more dangers and meet more tough competition. The risks are added by the changing international political situation and the vary exchange rate .Competitor's sparkling competitive strategy in price, promotion and products made the international market more and more narrow.

5.       The scope of domestic marketing is narrow and will sooner or later dry up. On the other end, international marketing has never-ending opportunities and scope.

6.        As is obvious, the benefits in domestic marketing are fewer than in international marketing. Furthermore, there is an additional incentive of foreign currency that is essential from the point of view of the home country as well.

7.        Domestic marketing is restricted in the use of technology whereas international marketing allows utilize and sharing of latest technologies.

8.        Domestic marketing has nothing to do with political relations whereas international marketing leads to increase in political relations among countries and increased level of cooperation as a result.

9.        In domestic marketing, there are no barricades but in international marketing, there are many barriers such as cross cultural differences, language, currency, traditions and society.