how do MNC's spread their production across the globe
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MNCs perform several things to achieve this goal to increase production and Market Value for their Products.
Namely,
1. Large Companies assign the task of producing Spares(such as Automobile parts) to other small industries and assemble them later in their own name.
2. Another thing MNCs do is specialise industries in a particular country for a particular task.
Eg. A Chinese smartphone brand may actually produce its Batteries in Switzerland, Circuits in Korea, Assemble and Pack the product in China while its Customer Care Office may be located in India.
Hope That Helps!!
Namely,
1. Large Companies assign the task of producing Spares(such as Automobile parts) to other small industries and assemble them later in their own name.
2. Another thing MNCs do is specialise industries in a particular country for a particular task.
Eg. A Chinese smartphone brand may actually produce its Batteries in Switzerland, Circuits in Korea, Assemble and Pack the product in China while its Customer Care Office may be located in India.
Hope That Helps!!
Answered by
0
Answer:
MNCs are spreading their production across countries in many ways. Large MNCs set up production units jointly with local companies in a country. Many a times, MNCs buy local companies and then start expanding their production activities.
In developing nations, large MNCs give orders for production to small producers and groups. Footwear, garments and sports items are some commodities which are produced at a local level around the world. Later, the MNCs gives them their brand name and sell them to consumers.
For example, Cargill Foods, an American MNC acquired several small companies such as Parakh Foods in India. Cargill Foods is now the largest producer of edible oil in India
Explanation:
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