The MNC versus the GTC :comparison of their environments and strategies

Abstract

Japan established national trading companies during the 1880s as a means of achieving economic independence and in the 1900s used these companies to internationalize its domestic industries. Japaness trading companies served to consolidate and export the products of domestic manufacturers, which otherwise lacked the capabilities independently to penetrate overseas markets. In contrast, manufacturing companies in the US and Europe sought internationalization of their operations individually, and only after having established themselves in their domestic markets. Instead of relying on trading companies, the preferred method was direct investment, leading to the emergence of multinational corporations.