Question

How have the MNC"s Changed the world of economy ? ❤❤​

Answer 1

MNC has changed the world of the economy

♥ Untill the middle of 20th century , production was largely organised within countries .

♥ Countries used to trade in raw material , food stuff and finished products .

♥ But with entry of MNC , the economic activities of the companies are spread over many countries .

♥ Thus , all the goods and services are produced all over the world .

Hope it helps ✌

Shreya ❤

Answer 2

Explanation:

(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.

(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.

(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.