Question

what do you understand by MNCs and how it works

Answer 1

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Answer 2

MNC all the multinational corporations is a company that owns are controls production in more than one nation.

Effects of production in different countries by four ways

--JOIN PRODUCTION

MNC work jointly with some of the local companies to reduce the cost of production and MNC can earn great profits

--BUYING OF THE LOCAL COMPANIES

the most common root for the MNCs investment is to buy of the local companies and then to expand production

FRANCHISE

There is another way in which the MNCs control the production .large MNC in the developed countries place orders for the production with the small producers and the small producers would supply the products with the brand names of the MNCs in the market

FOREIGN INVESTMENT

the MNCs invest their money or spend their money to buy assets such as land building machines in different countries and this investment is called as foreign investment