Question

explain the role of MNCs in the globalisation process

Answer 1

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Explaination .........

Globalization is the rapid integration of the global economy through which countries interlink in a variety of ways. Globalization has enabled improvement in trade and communication with different countries. The silk route is one such example from earlier times.

Over the last 20-30 years there has been a tremendous increase in globalization with the increase in the number of MNCs. MNCs are Multi National Corporations or companies which have set up production in more than one country. MNCs set up production worldwide where cheap labour is available, where markets are near, and where government policies look after their interests. Since the MNCs are producing as well as selling in many countries, they are interlinking the economies of these countries and thus speeding up globalization.....

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Answer 2

MNCs play an important role in the globalisation  process.

(i) MNCs control production in more than one  country.

(ii) They compete with the local producers directly  even after being miles apart, thus integrating the  markets.

(iii) Their working leads to exchange of investments  and products which leads to interconnection  between diverse countries.  Countries get linked when movement of goods,  people, investment and services between  different countries takes place.

They can be  linked as producers or consumers of same  products or one can be a producer and the  other consumer. The recent advancement in  technology, transport and communication  systems has enhanced globalisation.