What defines a transnational company?

A transnational company is defined as a business that has a head office in one country while operating branches or subsidiaries in various other countries. This structure allows the company to manage its operations on a global scale, enabling it to leverage resources, talent, and markets effectively across different regions. The presence of a central head office ensures strategic direction and coordination, while the branches facilitate localized operations and adaptation to different markets.

In contrast, a company that operates only within national borders is not considered transnational, as it lacks the international presence that characterizes such organizations. A marketplace with no geographical limitations refers to a concept rather than a specific company structure, and it doesn't relate to the characteristics of transnational corporations. Lastly, a firm that exclusively trades raw materials is also too narrow a definition, as transnational companies often engage in diverse activities that encompass various industries beyond just trading raw materials.