Question

What are MNCs ?
How do they organize production ? Elucidate ( for 3 marks)


CLASS 10 - CBSE

Answer 1

MNC is a multi national company that owns and controls production of goods and services in two or more countries other than their home country.

They organise production by the following ways-
1. Buy up a local production company.
2. place orders for production with small producers.
3. by setting up a partnership with a local company.

I hope this will help you☺

Answer 2

What are MNCs?
Multinational corporations (MNCs) are organizations that are owns or controls production of goods or  services in one or more countries other than the home country. MNCs set up offices and factories for production in regions where they can get cheap labour and other resources. The MNCs is not only selling its finished products globally, but the goods and services are produces globally.

How do MNCs organize production?
MNCs source raw material, employ labour and set up production facilities wherever the cost or rate is lowest in order to have economic advantages. They also scale up their production into large volumes in order to attain low cost per unit produced; this is called economic scale of production. The MNCs look to set up base in countries where political, bureaucratic, governmental and other local interference is minimum, the tax system is less stringent and concessions are extended by the local government to encourage industrial growth.     

-Ekansh Nimbalkar