Question

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

Answer 1

(a) Buy up a local production company.
(b) Place orders for production with small producers, i.e., contract manufacturing.
(c) By setting up a partnership (joint venture) with a local company.
(d) Setting up their wholly owned subsidiary in the other country.
(e) By licensing or franchising their brand to a local company.

Answer 2

HEYA MATE HERE U GO.

MNCś can set up and control production in other countries in the following ways.

• By setting up new factories /production units.
• By purchasing /acquiring local units of domestic nations.
• By setting up parternership with local companies.

MNCs have technical , financial and marketing superiority and thus can control production in other countries.