Question

how do multinational companies interlink production across countries

Answer 1

they can set up their branches in others countries and sell their products in others countries interlink their production across countries
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Answer 2

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

●They set up production jointly with local companies. They provide money for additional investments like buying new machines for faster production.

● MNC may  buy up local companies and then  expand production. For example : Cargil Foods, a very large MNC (USA), has bought smaller Indian companies such as Parekh Foods.

●The MNCs provide efficient managerial and advanced technology for faster production and efficient use of resources.

● Large MNCs in developed countries place orders for production with small producers. Examples are Garments, footwear, sports items etc. The products are supplied to the MNCs, which then sell these under their own brand names to the customers.

●MNC's procure raw materials for their production from local producers which has helped the latter to prosper and grow.  



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