Question

Mention three ways in which mncs are spreading their production units across the globe. What factors are kept in mind by the mncs while setting up their production units?

Answer 1

1.By setting up partnerships with local companies.The benefit to the loxal company of such joint production is two fold .
2. By closely competing with local companies or buying them up.
3.By using local companies for supply .Large MNCs in developed countries place orders for production with small producers which are supplied to MNCs nd sell these under their own brand names to customers.

Answer 2

a) setting up production jointly with locol companies.

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

c) They have increased their investments over the past 15 years.

d) Many MNCs buy up local companies and expand production.