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International Business Terminology
International business, like every field of study, has its own ter-minology. To assist you in learning the special vocabulary, an impor-tant function of every introductory course, a glossary has been in-cluded and the most important terms are listed .
As with any new discipline, a number of words are employed whose definitions vary among users. Global, for example, is becoming the most widely accepted term to describe an organization that pro-duces in, markets in, and obtains the factors of production from mul-tiple countries for the purpose of furthering overall enterprise benefits. Yet some people use such terms as transnational, supranational, and multinational for global. Furthermore, multinational may have two distinct meanings, depending on whether the user is describing owner-ship or the areas of operation. For example, multinational usually de-scribes a firm that operates in more than one country; however, gov-ernment officials in the developing nations and some international or-ganizations use multinational to indicate a joint venture whose owners (governments or groups of stockholders) come from three or more na-tions. These same officials call a firm operating in two or more coun-tries a transnational. This adds to the confusion because for years, Eu-ropeans have used transnational to describe a company formed by a merger of two firms of approximately the same size that are from dif-ferent countries. It is not a joint venture. Four of the largest are (1) Unilever (Dutch-English), (2) Shell (Dutch-English), (3) Azko-Enka (Dutch-German), and (4) ABB, a merger of ASEA (Swedish) and Brown-Boveri (Swiss).