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Multinational vs Multicultural, Essay Example

Pages: 1

Words: 378

Essay

The main difference between a multinational and a multicultural organization is that a multinational operates in several countries while a multicultural has individuals from diverse cultural backgrounds. Trends and best practices for multicultural and multinational corporations can be different; therefore, it is necessary to make a distinction. A multinational organization runs in different countries, while a multicultural one is defined by having individuals from diverse backgrounds.

A multinational organization differs from a multicultural organization in that it operates in various nations with an aim to gain profit (Chen, 2022). On the other hand, a multicultural company is one that allows individuals from different cultures to work together in achieving organizational goals while also seeking to eliminate discrimination. In this case, a multinational organization has foreign power, capital, human labor, and resource-seeking strategies that enable them to thrive in the international market. A multicultural organization accommodates individuals from diverse cultures and provides them with an equal opportunity to put in their effort and advance within the business (Hussain, 2018). Such organizations seek to achieve diversity and inclusion within their workforce while multinational corporations focus on tapping into the most productive markets in various parts of the world.

It is necessary to make distinctions between multinational and multicultural organizations when defining trends and best practices within global companies. A particular trend might be beneficial to a multinational organization but hold no benefit for a multicultural organization. This might be the case when a particular product is trending in a foreign country since a multinational company can easily tap into the market, but a multicultural one cannot. However, a multinational can also be termed to be multicultural if it has employees coming from different cultures.

In conclusion, a multinational organization runs in different countries while a multicultural one is defined by having individuals from diverse backgrounds. Best practices and trends that can be termed to be beneficial for a multinational corporation may fail to be productive for a multicultural; therefore, it is necessary to make a distinction between the two.

References

Chen, J. (2022). Multinational Corporation. Investopedia, https://www.investopedia.com/terms/m/multinationalcorporation.asp 

Hussain, S. (2018). Managing communication challenges in multicultural organizations. International Journal of Media, Journalism and Mass Communications (IJMJMC), 4(2), 44-49. http://dx.doi.org/10.20431/2454-9479.0402005

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