Question

Why do the MNC expand their
market by placing order for
production with Small producers​

Answer 1

MNC expand the market by placing orders for production with small producers because small producers have already an established framework of business

they have an established capital and industries which can produce products for the MNCs so that MNC can produce required technology for them and sell the products under their name and brand and earn profits

Answer 2

Answer:

MNCs may place orders for their commodities with the local producers of developing countries. This will reduce the cost of production and also reduce the risk of local competition.

MNCs sell these products under their own brand name.

i)Producers can sell their produce not only in markets located ... ii) MNCs also buy some local companies to expand ... iii) By placing orders with local companies.

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