Question

Explain the ways in which MNC’s operate in different countries and interlink

production across countries.​

Answer 1

ANSWER:

THE MNCs are spreading their production and interacting with countries in the following ways: By setting up partnerships with the local companies. By using the local companies for supplies. By closely competing with the local companies or buying them up.

EXPLANATION:

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Answer 2

Answer:

MNC stands for Multinational Company. These are companies which own or control their production in more than one country. MNCs have operated in different ways in different countries: -

Sometimes, MNCs jointly start a production process with a local company.  

But most of the time MNCs buy a local company and look to expand the production process. Many of the huge MNCs are capable of doing so.

At times some of the MNCs have also given orders to the small companies and producers. The products made by them would then be sold all over the world with the name of the MNC.

This way, MNCs situated miles apart are able to meet the production target by small producers and companies all over the world working for them. This is how MNCs interlink production in different countries.