A transnational organization, also called a global organization, views the entire world as its business arena.⁵⁶ Doing business wherever it makes sense is the primary goal; national borders are considered inconsequential. The transnational organization transcends any single home country, with ownership, control, and management located in many different countries. Transnational organizations represent the fourth, and maximum, level of international activity as depicted on the continuum of international involvement presented earlier in this chapter. Seeing great opportunities in the global marketplace, some MNCs have transformed themselves from home-based companies with worldwide interests into worldwide companies pursuing business activities across the globe and claiming no loyalty to any one country.

Perhaps the most commonly cited transnational organization is Nestlé.⁵⁷ Although Nestlé is headquartered in Vevey, Switzerland, its arena of daily business activity is truly the world. Nestlé has a diversified list of products that include instant coffee, cereals, pharmaceuticals, coffee creamers, dietetic foods, ice cream, chocolates, and a wide array of snack foods. Its acquisition of the French company Perrier catapulted Nestlé into market leadership in the mineral water industry. Nestlé has more than 210,000 employees and operates 494 factories in 71 countries worldwide, including the United States, Germany, Portugal, Brazil, France, New Zealand, Australia, Chile, and Venezuela. Of Nestlé’s sales and profits, about 35 percent come from Europe, 40 percent come from North and South America, and 25 percent come from other countries. As with most transnational organizations, Nestlé has grown by acquiring companies rather than by expanding its present operations.⁵⁸