what is the role of MNCs in the globalization process
Answers
Answer:
1. Globalization is a process of rapid interdependence and interconnectedness amongst the countries of the world. The Multinational Corporations (MNCs) have played a major role in stimulating and spreading the process of globalization.
2. MNCs usually set up production units across the globe in places where the market is nearby, there is the availability of skilled and unskilled labour at low costs and other factors essential to the growth of production.
3. The setting up of production in various countries leads to the development of products globally. Sometimes, the MNCs might also set up production with the local companies of a country as a joint responsibility, thus bringing in the latest technology and foreign investment.
4. The MNCs also link and control the production of goods. Large MNCs in developed countries often place orders for production with small producers all around the world which are then sold by the MNCs under their brand name.
5. The power of control and influence of such corporations has contributed to the interlinking of such widely dispersed locations across the globe. This process, in turn, has contributed to the growth of globalization process.
Answer:
MNC's plays an important role in the globalisation process. They complete with the local producers directly even after being miles apart, thus integrating the markets. Their working leades to exchange of investments and products which leades to interconnection between diverse contries.