Question

Explain by giving examples that Multinational Corporations (MNC s) are spreading their productions in different ways.

Answer 1

 Multinational Corporations are spreading their productions in different ways :

(a) By setting up partnership with local companies.
(b) By placing orders with local companies. e.g: Garments, Footwear, Sports items etc.
(c) By closely competing with the local companies.
(d) By buying local companies- e.g: Cargill buying Parakh foods in India.

Answer 2

Multinational Corporations are spreading their productions in different ways :

(i) By setting up partnership with local companies.

(ii) By placing orders with local companies. For example, garments, footwear, sports items, etc.

(iii) By closely competing with the local companies.

(iv) By buying local companies. To take an example, Cargill Foods, a very large American MNC has bought over smaller Indian companies such as Parakh foods. Parakh Food had built a large marketing network in various parts of India, where its brand was well-reputed.