Question

Explain any three methods of controlling production across countries by MNCs .​

Answer 1

1. They buy a local company.

2. They may provide them the required technology for production.

3. They may use local level labours to make their products

Answer 2

1) MNC's set up production where it is close to the market, where skilled and unskilled labour is available at low cost.

2) They do so to earn greater profits and so the cost of production is low.

3) They bring with them the latest technology.

4) They provide money for additional investment.

5) MNC's in developed countries place orders for production in local industries. ex. garment, footwear.

6) MNC's with huge wealth also sometimes buy up local companies. EX. Cargill Foods, which is an American MNC bought up the Parakh Foods.