Question

What are the various ways in which MNCs set upor control production in other countries?
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Answer 1

Answer:

MNCs set up, or control, production in other countries in the following ways :

1. MNCs set up production on the basis of following factors :

a. Closeness of the place to the markets.

b. Availability of skilled and unskilled labour at low costs.

c. Availability of other factors of production i.e. raw material etc.

d. Government favourable policies.

Answer 2

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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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