On the Quality of a Multinational Company's Transnationality Index

The Transnationality Index (TNI) is used by UNCTAD for ranking multinational corporations that have a global presence. It is supposed to help in assessing the degree to which foreign activities of those companies are embedded in the global economy. However, in reality, it only reflects a balance between the company's activities carried out in their home country and host countries. The way the TNI is calculated today does not involve considering the importance of both the home and host countries for the global economy. This can lead to paradoxical conclusions. In our article, there is an approach proposed to calculate the TNI considering the global impact of the countries where a multinational company (MNC) operates.