How do Multi-National Corporations (MNCs) control production in other countries? Explain.
OR
Explain three conditions that determine MNC’s setting up production in other countries.
OR
How are MNCs spreading their production across countries? Explain with examples.
OR
Examine any three conditions which should be taken care of by multinational companies to set up their production units.
MULTINATIONAL Corporations control production in other countries in the following ways :
- MNCs set up production where it is close to the market.
- Where there is skilled and unskilled labour available at low cost
- They set up their production jointly with some of the local companies.
- The MNCs select those countries where the government look after their interest.
- Sometimes, MNCs buy local companies and then expand their production.
- Large MNCs in developed countries place order for production with small producers.
- The products are supplied to the MNCs which they sell under their own brand names to the customers.
- These large companies have tremendous power to determine price, quality, delivery and labour conditions for these distance producers.
- Sometimes they provide money.