Question

what is MNC? Explain how production is spread all over the world

Answer 1

The most common strategy of a Multi National Corporation is to first buy a local company and then to expand production. Depending on the product MNCs adopt another strategy also. In labour intensive products like garments and footwear, MNCs place huge orders from developing nations, and then sell these under their own brand names to the customers. MNCs are spreading their production and interacting with local producers in various countries across the globe. MNCs are setting up partnerships with local companies. MNCs are using the local companies for supply of raw material or accessories. MNCs are closely competing with the local companies. MNCs are taking over local companies with their immense money power. Thus MNCs are exerting a strong influence on production at distant locations.