Question

How MNCs spread their production ?

Answer 1

Heya!

Here is your answer!
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MNCs perform several things to achieve this goal to increase production and Market Value for their Products.
Namely,

1. Large Companies assign the task of producing Spares(such as Automobile parts) to other small industries and assemble them later in their own name.

2. Another thing MNCs do is specialise industries in a particular country for a particular task. 
Eg. A Chinese smartphone brand may actually produce its Batteries in Switzerland, Circuits in Korea, Assemble and Pack the product in China while its Customer Care Office may be located in India.

                                                             OR

1. they can buy a LocaL industry an expand the industry.
2. they can set up an industry on their own and do business.
3. they can start their business or industry jointLy with the local traders.
4. they can place orders to local manufactures and buy the goods. later they       can sell those goods under their own brand name and make.

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Hope it helps!

Answer 2

There are variety of ways in which the MNCs are spreading their production across the globe such as:

(i) setting up partnerships with the local companies;

(ii) using the local companies for supplies; and

(iii) closely competing with the local companies or buying them.

As a result, production in these widely dispersed locations is getting interlinked.