Question

in what way do MNC control production of local companies​

Answer 1

Outsourcing is one of the methods of the MNCs to control local

companies

(i) Large MNCs in developed countries place orders for production with

small producers.

(ii) Garments, footwear, sports items are examples of industries where

production is carried out by a large number of small producers around

the world.

(iii) The products are supplied to the MNCs, which then sell these

products under their own brand names to the customers.

iv) These larger MNCs have tremendous power to determine price,

quality, delivery and labor conditions for these distant producers