Question

Explain by giving example that multinational corporation (MNC) are spreading their production in different ways?

Answer 1

MNC ‘s are spreading to other countries in order to increase their profit and decrease their production costs.
MNC ‘s can come to different countries and set up base in 4 ways. they are:

1.they can buy a local industry an expand the industry.
2.they can set up an industry on their own and do business.
3.they can start their business or industry jointly with the local traders.
4.they can place orders to local manufactures and buy the goods. later they can sell those goods under their own brand name and make
huge profits.

Answer 2

1. Jointly with some local companies if existing countries.[Ford motors collaborated with Mahindra and Mahindra]

2. Buy the local companies which are already existing.[Cargill Foods bought Parakh Foods]

3. They place orders for small producers and sell these products under their own brand name to the customers worldwide.

Hope this helps!!