how do MNCs control production and market? explain
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how do MNCs control production and market? explain
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(i) MNCs set up offices and factories for production in regions where they can get cheap labour and other resources. (ii) This is done so that the cost of production is low and the MNCs can earn greater profits. ... (v) The most common route for MNC investments is to buy up local companies and then to expand production
Answer:
1. MNC buy local companies to extend production
2.MNC's setup production jointly with local companies they provide mobey and latest technology
3.Large MNCs in developed countries place orders for production with small producers.
Garments, footwear, sports items, are examples of industries where production is carried out by a large number of small producers around the world.
4.The products are supplied to the MNCs which then sell these under their own brand names to the customers.