Social Sciences, asked by shivamthapa820p5ijfy, 1 year ago

What are multinational companies? How do they control production in other countries? Explain with examples.

Answers

Answered by Nandinikaushik
4
Multinational companies are those whoch control production in more then one nation.
They do this in various ways:
1. They jointly open a mnc with a local company by this the local company gets 2 benefits, they get capital from mnc to buy new and expensive machines and equipments, and the mnc can also bring new technology with them.
2. They buy a local company and then expand their production. MNC with huge capital can easily do this.
3. They give order of products to local companies and when the order is delivered they put there logo on the product and sell it on highr prices so they get huge profit.
Hope it help
Answered by Anonymous
0
Multinational companies are the companies that owns or controls the production of their goods in more than one country.
They control production in other countries by :
1.They set up their units where the cost of production is low and higher profits can be earned.
2.They set up their units where they can get cheap labour and other resources.
3.They join hands with local companies of that country and starts their production.
Example :Cargill foods which is a huge American MNC has bought over small Indian companies such as Parakh foods and expanded the range of its production of edible oils in India.

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