Question

Explain how MNCs set up production in different ways?

Answer 1

Answer:

1) By buying local companies of an area.

2) By making partnership with the owner of local companies.

3) By investing in local companies to encourage the production of foreign product in any country.

Explanation:

MNCs are Multi-National Companies which as the term suggests run in multiple countries or other words internationally.

But for them to function in different regions, they must take specific measures like buying a local company in the region so that the functioning is not interrupted as the companies function as they already were previously only in partnership with the MNCs.

The MNCs can also franchise their brands to various companies.