Question

How has the MNCs changed the world economy?

Answer 1

1. before the advent of MNCs , production was predominantly organised within individual countries. They are used to trade in raw materials food stuff and varieties of finished goods.
2. But with the entry of MNCs, economic activities of companies were spread over many countries. Divisions in the processes of production and other activities were created as MNCS established there offices and factories for production in areas where there was easy availability of cheap labour and other resources. this was done so as to decrease the cost of production and increase profits.
3. Hence, MNCS has enabled goods and services to be produced globally which has greatly impact the world economy.


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Answer 2

MNCs are playing a major role to play in the world economy:

Increase in the foreign trade

Increase in foreign investment

exchange of technology between countries. 

Better means of communication have developed alongside globalization and other economic activities.

Better job opportunities for people gave rise to migration