What are multinational companies how do they control production in other countries with example?
Answers
A multinational corporation or worldwide enterprise is a corporate organization which owns or controls production of goods or services in at least one country other than its home country.
The various ways in which MNCs control production in other countries are by buying out domestic companies or making the latter work for them. Sometimes, MNCs buy mass produce of domestic industries, and then sell it under their own brand name, at much higher rates in foreign countries. MNCs look towards developing nations to set up trade because in such places, the labour and manufacturing costs are much cheaper.
MNC company that owns or controls production in more than one Nation
Following are the ways in which MNCs set up production in other countries
1) MNCs set up offices and factories in the regions where they can get cheap labour and other raw material naturally this will decrease the cost of production and this will increase their profit.
2) set up production jointly with some other local companies it has to benefit for a local company
a) the latest technology will be introduced by MNC
b) investment will be made by MNC
3) place order of production with small producers prevailing in the country
4)buy up the local companies and expand production example Parag foods and Cargill foods
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