Question

How MNCs control and set up production across different countries?(3 marks)

Answer 1

1)By setting up partnership with local companies.

2)By closely competing with local companies.

3)By using local companies for supply.

Answer 2

HEY MATE<

i. The most common route for MNC investments is to buy up local companies and then expand production. To take an example, Cargill Foods, a very large American MNC, has bought over smaller Indian companies such as Parakh Foods.

ii. There’s another way in which MNCs control production. Large MNCs place orders for production with small producers. They purchase goods like garments and footwear from these small companies and then sell these under their own brand names to the customers. These large MNCs have tremendous power to determine price, quality, delivery, and labour conditions for these distant producers.

iii. They set up partnerships with local companies and expand production in some cases. Thus MNCs are exerting a strong influence on production at distance.

Hope it helps..

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