Question

How does MNC keep a check on production?
or
How MNC interacts with local producers around the globe?

Most probably as 3 MKS Answer (: Do ANSWER

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Answer 1

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• The most common way for MNC is to buy up local companies and then to expand production. For example; Cargil foods, a very large American MNC, has bought over smaller Indian companies such as Parakh foods.
• The another way in which MNCs control production is by providing orders for production with small producers. Garments, footwear,sport items are examples of industries where production is carried out by a large number of small producers around the world. The products are supplied to the MNCs which sell these under their own brand names to the customers. These large MNCs have tremendous power to determine price, quality, delivery, and liver conditions for these distant producers.

By setting up partnerships with local companies, by using the local companies for supplies, by closely competing with local companies or buying them up, MNCs are exerting a strong influence on production at the is distant locations. As a result,production in these widely disappeared locations is getting interlinked.

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