What are MNC?what are the ways in which MNCs set up or control production in other countries?
Answers
Hey mate ☺
MNC stands for Multi-national Company/Corporation : It is a company that owns or controls production in more than one country.
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WAYS :
◆ BY JOINT VENTURE : At times, MNCs setup production jointly with some of the local companies. The benefit of the local company of such joint is two-fold. First, MNCs can provide money for additional investments like buying in new machines for faster production. Second, MNCs might bring with them the latest technology for production.
◆ BY BUYING LOCAL COMPANIES : The most common routefor MNCs investment is to buy up local companies and then to expand production.MNCs with huge wealth can quite easily do so.
◆ BY PLACING ORDERS TO SMALL PRODUCERS : There's another way in which MNCs control production. Large MNCs in developed countries place orders for production with small producers. Garments, footwear, sport items are examples of industries where production is carried out by a large number of small producers around the world.
Hope it helps you ☺✌✌
HEYA MATE HERE U GO.
MNCś can set up and control production in other countries in the following ways.
By setting up new factories /production units.
By purchasing /acquiring local units of domestic nations.
By setting up parternership with local companies.
MNCs have technical , financial and marketing superiority and thus can control production in other countries.
HOPE THIS WILL HELP U.