Question

How India can contribute to the spreading of production by an MNC?

Answer 1

Answer:

Indian Govt. can Remove All The Trade and Investment Barriers to (Liberalise) trade policy for Making Free trade.

Answer 2

Multi-National Corporations

Explanation:

Multi-National Corporations are large companies established in a particular country and have offices all over the world. They source their products and market their produce in all countries they do business in. India can contribute to the spreading of production by an MNC as follows:

1. Produce jointly with local companies When MNCs producte jointly with local companies of India, the Indian company will get monetary and technological help from the MNC. In turn, the MNC will benefit from low cost of production.
2. Purchase local companies: Generally, MNCs acquire local companies that already have an established reputation int he market. Example: Cargill Foods acquired Parakh Foods in India.
3. Place orders for products locally: MNCs can place orders for their commodities with local producers. This will reduce the MNC's cost of production and also reduce the risk of local competition. MNCs sell the products with their brand advantage and make huge profits.