Question

Explain three ways in which mncs are spreading their production in various countries across the globe

Answer 1

The most common strategy of a Multi National Corporation is to first buy a local company and then to expand production.

Depending on the product MNCs adopt another strategy also. In labour intensive products like garments and footwear, MNCs place huge orders from developing nations, and then sell these under their own brand names to the customers.

MNCs are spreading their production and interacting with local producers in various countries across the globe. MNCs are setting up partnerships with local companies.

Answer 2

The most common strategy of a Multi National Corporation is to first buy a local company and then to expand production. ... MNCs are spreading their production and interacting with local producers in various countries across the globE.

1.By setting up partnerships with local companies.The benefit to the loxal company of such joint production is two fold .

2. By closely competing with local companies or buying them up.

3.By using local companies for supply .Large MNCs in developed countries place orders for production with small producers which are supplied to MNCs nd sell these under their own brand names to customers.

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