Business Internationalization and Transnationality Index (TI)

The level of internationalization of an Organization, is obtained through the Transnationality index transnationality (TI) which was developed by UNCTAD - United Nations Conference on Trade and Development.

The transnationality index (TI) is applied to business companies of private equity and has been studied, since 2006, by the Center for Strategy and International Business - Foundation Dom Cabral (Núcleo de Estratégia e Negócios Internacionais da Funda??o Dom Cabral) in Brazil. Since 2014, this topic it has also started to be studied at INDEG - ISCTE (University of Lisbon) in Portugal, with the institutional support of AICEP Global Portugal.

This instrument (TI) allows you to individually analyse the foreign business development capacity each company, versus the current performance in the local market. Subsequently establishes an TI ranking, by gathering data and crossing intra-company information in the same year. In addition, it can determine, longitudinally, the historical evolution of the organization, in a global way (aggregate data of all subsidiaries), by allocating two types of variables (V):

(I) Assets (A)

(Ii) Employees no. (C)

However, the annual and historical determination of transnationality is dependent on the combination of these variables with the annual income (R).

These variables are sub-classified into global information (T) and/or international information(e).

For data collection it is a mandatory requirement to customize the typology of Organizations under analysis, therefore, the companies should meet the following criteria:

• Owning capital and control mainly local;
• Owning physical presence abroad, from subsidiaries such as:
  • Sales offices
  • Production/assembling units;
  • Deposits and distribution centres;
  • Service Units
  • Bank agencies;
  • And/or Research and development (R&D) units.