Question

List three uses of money while setting up an MNC and spreading its production .​

Answer 1

Answer:

The multinational corporations have spread their production and interaction with local producers in the following ways :

(i) Setting up production jointly with local companies. They provide money for additional investments like buying new machines for faster production. For example : Cargil Foods, a very large MNC (USA), has bought smaller Indian companies such as Parekh Foods.

(ii) The MNCs provide efficient managerial and advanced technology for faster production and efficient use of resources.

(iii) They have increased their investments over the past 15 years. They provide employment opportunities to the masses. The local companies supplying raw material to these industries have prospered.

(iv) Many food processing multinational companies such as Pepsi, Coca-Cola have taken over Indian markets in cold drinks and food products. This helps in greater choice for consumers with a variety of goods at cheap prices.

Explanation:

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