What are multinational companies? how do they control production in other countries? Explain with examples.
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MNC is a company that owns or controls production in more than one nation
They set up offices and factories for production in regions where they can get cheap labour and other resources .
For example a mnc is sets its reasearch centre in US and then has its machine's components manufactured in china ... It sets up its call centre in India ...
This is because china provides advantage of being cheap manufacturing location and India has young youth who speak fluent or good english ...
They set up offices and factories for production in regions where they can get cheap labour and other resources .
For example a mnc is sets its reasearch centre in US and then has its machine's components manufactured in china ... It sets up its call centre in India ...
This is because china provides advantage of being cheap manufacturing location and India has young youth who speak fluent or good english ...
Answered by
39
Multi National Companies or MNCs are the companies that owns or controls production of goods or services in atleast one country other than its home country
They control production in other countries:
•By joint Venture--At times MNCs set up production with some of the local companies
•By buying local companies-They buys small local companies
•By placing order to small Producers-then using their brand name, selling those products in higher price
example are like Tata
They control production in other countries:
•By joint Venture--At times MNCs set up production with some of the local companies
•By buying local companies-They buys small local companies
•By placing order to small Producers-then using their brand name, selling those products in higher price
example are like Tata
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