Explain any three in which ways MNCs have spread their production and interaction with
local producers in various countries across the globe.
Answers
Answer:
Multinational Corporations (MNCs) set up their factories or production units close to markets where they can get desired type of skilled or unskilled labour at low costs along with other factors of production. After ensuring these counditions, MNCs set up production units in the following ways :
(a) Set up jointly with some local companies of the country.
(b) Buy the local companies and then expand its production with the help of modern technology.
(c) They place orders for small producers and sell their products under their own brand name to the customers worldwide.
⛧Answer⛧
The multinational corporations have spread their production and interaction with local producers in the following ways :-
(i) Setting up production jointly with local companies. They provide money for additional investments like buying new machines for faster production. For example : Cargil Foods, a very large MNC (USA), has bought smaller Indian companies such as Parekh Foods.
(ii) The MNCs provide efficient managerial and advanced technology for faster production and efficient use of resources.
(iii) They have increased their investments over the past 15 years. They provide employment opportunities to the masses. The local companies supplying raw material to these industries have prospered.
(iii) They have increased their investments over the past 15 years. They provide employment opportunities to the masses. The local companies supplying raw material to these industries have prospered.(iv) Many food processing multinational companies such as Pepsi, Coca-Cola have taken over Indian markets in cold drinks and food products. This helps in greater choice for consumers with a variety of goods at cheap prices.