Question

Explain by giving the example that multinational corporation are spreading their production 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

Answer:

The multinational corporations have spread their

production and interaction with local producers in the

following ways :

a. Setting up production jointly with local companies.

They provide money for additional investments

like buying new machines for faster production.

b. The MNCs provide efficient managerial and

advanced technology for faster production and

efficient use of resources.

c. They have increased their investments over the

past 15 years. Large MNCs place orders for

production with small, local producers. The

local companies supplying raw material to these

industries have prospered.

d. Many MNCs buy up local companies and expand

production. For example, Cargill Foods, an

American MNC, bought up Parakh Foods.

Thus, we see that MNCs are spreading production

and interaction with local producers by

Setting up partnerships,

Using local companies for supplies and

Closely competing with local companies or buying

them up