What are the various ways in which mncs set up or control production in other countries in points?
Answers
The various ways in which MNCs set up or control production in other countries are
(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.
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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.
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