Question

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


CLASS 10 - CBSE

Answer 1

A multinational corporations or worldwide enterprises is a corporate organisation that owns or control production of goods or service in two or more countries other than their home countries
they organize their products by using the local companies for suppliers by closing comptiting with the local companies or buying them up

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