how do mnc interlink production across the country? explain with examples.
Answers
Multi National Company(MNC) interlink their product by numerous ways which are mentioned below:
1) By buying local companies. e.g when "coca-cola" came to India it bought the local company "Thumps-up".
2) By exerting a strong influence on production at distant location.
3)The MNCs also link and control the production of goods. Large MNCs in developed countries often place orders for production with small producers all around the world which are then sold by the MNCs under their brand name. e.g Branches of McDonald's or KFC.
4)By closely competing with the Local Companies, e.g colgate vs Babool
There are multiple ways in which the multinational companies interlink different types of production all across the country.
They set up partnerships with local companies and also they have a vast influence on production at distant locations.
Production gets dispersed and the whole process of producing high quality industrial products gets smoothened.
They often buy products from local companies and combine them with their own products and send the finished product to the market.