Question

how do MNC work in other countries

Answer 1

MNCs are companies that have their branches or manufacturing units in more than one nation. MNCs establish their factories and offices in regions where cheap labour, raw material and other resources are readily available. This minimizes the cost of production and increases the profit.

MNCs invest in other countries to lower their cost of production in order to earn maximum profits. This investment can be done in three ways. First, the MNC establishes itself on its own in the new country by buying land, constructing its factory and buying machines etc. Second, MNCs set up production by entering into joint ventures with some of the local companies of that country. Third, MNCs can buy a local company having considerable market share in that country. This enables an MNC to expand production on an already-created base.

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Answer 2

Hii dear!!

the Multinational Corporation (MNC) has facilities and other assets in at least one country other than its home country. Such companies have offices and/or factories in different countries and usually have a centralized head office which they coordinate Global management.

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