Question

What are the various ways in which MNCs set up, or control, production in other countries?​

Answer 1

Solution:

Multinational Corporations (MNCs) set up their factories or production units close to markets where they can get the desired type of skilled or unskilled labour at low costs along with other factors of production. After ensuring these conditions MNCs set up production units in the following ways :

• MNCs are setting up partnerships with local companies.

• Buy the local companies and then expand its production with the help of modern technology.

• They place orders for small producers and sell these products under their own brand name to the customers worldwide.

• MNCs are taking over local companies with their immense money power.

• Through the above ways, MNC's are exerting a strong influence on production at distant locations.

Answer 2

Answer:

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Explanation:

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