Question

Explain any three ways in which mncs have spread their production and intraction with local producers in various countries across the globe​

Answer 1

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The most common strategy of a Multi National Corporation is to first buy a local company and then to expand production.

Depending on the product MNCs adopt another strategy also. In labour intensive products like garments and footwear, MNCs place huge orders from developing nations, and then sell these under their own brand names to the customers.

MNCs are spreading their production and interacting with local producers in various countries across the globe. MNCs are setting up partnerships with local companies.

Answer 2

⛧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.

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