I have a question from my business studies book. Say an airline like Qantas, they fly overseas but don’t really have any builds or significant infrastructure outside their home country. Could someone please let me know.
Well, there are the government owned airlines like Korean and Air China, and there are the privately owned ones. I see airlines as international businesses because there are usually a lot of share holders and investors who invested into the airline, who might not be from the particular country an airline is registered in.
I think the government owned ones are national though
ok thanks @DiamondGaming4!
That’s why I chose Qantas and not a bunch of different airlines, not to mention that it’s the national carrier of my country and my favourite airline. Oh wait I just answered my own question.
I’m sure if you’re studying business, you can ask your teacher/professor.
Qantas is an international business, they operate in an international market. Simples
@DiamondGaming4, school doesn’t start for a while here and I’m not going to school today plus it’s the only time I have to get it done so yeah don’t have time to contact her.
Ok, thanks a lot @Chatta290!
Happy Birthday btw!
Oh ok, sorry about that and thank you.
Ok, I just checked what the definition of an “international business” is and you are correct.
Oh and about the birthday thing, it was yesterday but I changed it to today because it was bugging me and I don’t want people knowing and I may have forgotten to change it back.
Yeah it’s simpler than it seems. If you sell goods or services abroad I would say it’s an international business.
I think before we start tossing answers about, we should perhaps find the definition of a multinational and go from there.
One more stringent definition of a multinational corporation requires that business to have facities owned in various countries, while another simply requires 50 percent of its revenue stream originate outside of its home country, while still another looks at customer base and another at services rendered.
The only clear-cut fact I can find is that there is no clear-cut definition. So, unless your class has offered a definition by which you are to be held, I think you have to just establish the definition you’re using and go from there.
Hey @Tim_B, my class doesn’t have a set definition since I have been at school this year yet and the textbook doesn’t provide an answer, hard thing is that I have no idea where 51% or more of Qantas’s income comes from but I’m guessing it’s Sydney to Melbourne and vis versa route which is of course in it’s home country. But yeah I don’t have a set definition nor a way to measure the revenue stream.
To me, then, it seems an unfair question. In order to define something as one thing or the other, you have to first start with the definition. If they aren’t providing one, I’m not sure how they can call it wrong as long as you have a definition which you use and stick with it.
Disclaimer: I don’t want to be held responsible for your grade. So, while I believe that logically they can’t hold you to a definition they don’t provide, I can’t say for sure they won’t. You never know with teachers. (I once had to teach my daughter’s teacher electrical engineering because she graded all of her correct answers as incorrect.)
Don’t worry, this one question won’t affect my grades at all but damn about your daughters teacher!
Don’t know how correct I am but, in my opinion, all airlines are Multinational Corporations because they do their business (sell tickets in all countries, not only limited to Australia (quantas)). Not to be mistaken with Transnationals which have offices in multiple countries, e.g. Vodafone which has assets in loads of countries.
An MNC have investment in other countries, but do not have coordinated product offerings in each country. It is more focused on adapting their products and service to each individual local market. A TNC, on the other hand, have invested in foreign operations, have a central corporate facility but give decision-making, R&D and marketing powers to each individual foreign market.
Pretty much the same thing. Just because a business has more facilities in a country would not make it any different in terms if it’s business entity. The whole argument of TNC and MNC comes into it mainly when talking about other types of businesses. For example VW could either be classed as a TNC or MNC, in regards to an airline it’s much harder to distinguish and it’s a far more complex thing to talk about than the OP is needing. He just needs to know about international business in which case Qantas is.