Question

How do multi-national corporations (mncs) interlink production across countries ? explain with examples?

Answer 1

The multinational corporations have spread their production and interaction across the countries in the following ways :


i. There are varieties of ways in which the MNCs are spreading their production and interacting with local producers in various countries across the globe.

ii. By setting up partnership with local companies by using the local companies for supplies, by closely competing with the local companies or buying them.

iii. MNCs are exerting a strong influence on production at the distant locations.

iv. As a result, production in these widely dispersed locations is getting interlinked.

v. Example - Cargill Foods, Parakh Food

Answer 2

MNC ‘s are spreading to other countries in order to increase their profit and decrease their production costs.

MNC ‘s can come to different countries and set up base in 4 ways. they are

they can buy a LocaL industry an expand the industry.

they can set up an industry on their own and do business.

they can start their business or industry jointLy with the local traders.

they can place orders to local manufactures and buy the goods. later they can sell those goods under their own brand name and make

huge profits.