Question

Why production across the country is taken up by MNC

Answer 1

PRODUCTION OF GOODS IS ........ DONE

Answer 2

Production across countries is taken up by MNCs so as to expand their business and earn profits . This is done by ::-

1.) MNCs set up their production units in the areas where they get cheaper raw material, cheap skilled ad unskilled labour and other resources. This makes their production cost low. So they earn better profits by selling the produced good at high price in some other or the same country.For e.g. - Countries like China provide cheaper manufacting areas.

2.) MNCs buy up local companies to expand their business. By doing this they set up their production in that country. For eg - A major American company ,' Cargill' bought a local Indian company , 'Parekh Foods' . parekh foods already owned 3 oil factories which was then taken up by Cargill.

3.) MNCs buy local products and sell them at a higher rate. Many of the MNCs order goods like, garments, sports material, etc. from local companies. So their production cost is low . These MNCs put their brand name on the product and sell it at a high rate, This was they link the countries by ordering goods from a local company of another country. Also , the production across that country increases.

HOPE IT HELPS YOU!!