Social Sciences, asked by alok30, 1 year ago

what are the ways by which mncs control production

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Answered by sreenivas5
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Answered by Arcel
28

Ways by which MNC's control production:

  • Sometimes, MNCs set up production jointly with some of the local companies of these  countries.

  • The most common way for MNC is  investments to buy up local companies and then  to expand the production. MNCs with huge amount of money can quite easily do so.

  • Big  MNCs in developed countries place orders for production with small  people who produce footwear, garments, sports items are examples of industries where  production is carried out by a large number of small producers around the world.

  • They use local companies for supply by buying them up or  closely competing with the local  companies.
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