Question

how have mnc's changed the world economy??? explain with suitable examples.
pls answer this question as soon as possible​

Answer 1

(i) Before the advent of MNCs, production was predominantly organised within individual countries. They used to trade in raw materials, food stuff and varieties of finished goods.

(ii) 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 their 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.

(iii) Hence, MNCs have enabled goods and services to be produced globally which has greatly impacted the world economy.