How does multinational corporation company (MNCs) interlink production across countries. Explain with examples ??
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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
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
Harshita01:
MNCs are interlinking production across the globe in a very intrestin way:-
Oo thankx
Answered by
8
A MNC is a company that owns or control production in more than one nation.
In general, MNCs set up production where it is close to markets ,where there is skilled and unskilled labour available at low costs, and where the availability of other factors of production id assured.In addition MNCs might look for government policies that look after their interests .
MNCs set up production jointly with some of the local companies of these countries.The benefit to local company of such joint production is two fold.First MNCs can provide money for additional investments like buying new machines fir faster production.Second MNCs might bring with them the latest technology for production.
By setting up partnership with local companies by using the local companies for supplies ,by closely competing with the local companies or buying them up,MNCs are exerting a strong influence on production at these distant locations .As a result ,production in these widely dispersed locations is getting interlinked.
EG: Cargill foods, a very large American MNC,has brought over smaller Indian companies such as Parakh Foods .Parakh foods had built a large marketing network in various parts of India ,where it's brand was well -reputed.Also,Parakh Foods had four oil refineries ,whose control has now shifted to Cargill .Cargill is now largest producer of edible oil in India,with a capacity to make 5 million pouches daily.
Hope it helps!!
In general, MNCs set up production where it is close to markets ,where there is skilled and unskilled labour available at low costs, and where the availability of other factors of production id assured.In addition MNCs might look for government policies that look after their interests .
MNCs set up production jointly with some of the local companies of these countries.The benefit to local company of such joint production is two fold.First MNCs can provide money for additional investments like buying new machines fir faster production.Second MNCs might bring with them the latest technology for production.
By setting up partnership with local companies by using the local companies for supplies ,by closely competing with the local companies or buying them up,MNCs are exerting a strong influence on production at these distant locations .As a result ,production in these widely dispersed locations is getting interlinked.
EG: Cargill foods, a very large American MNC,has brought over smaller Indian companies such as Parakh Foods .Parakh foods had built a large marketing network in various parts of India ,where it's brand was well -reputed.Also,Parakh Foods had four oil refineries ,whose control has now shifted to Cargill .Cargill is now largest producer of edible oil in India,with a capacity to make 5 million pouches daily.
Hope it helps!!
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