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Class 10
Social Science - Understanding Economic Development
Globalisation and the Indian Economy
what are the various ways in which mncs set up or...

Question:
What are the various ways in which MNCs set up, or control, production in other countries?

Answer:

Various ways in which MNCs set up, or control, production in other countries are:

- MNCs set up production units close to the market so that they get cheaper labour.

- To increase production, MNCs collaborate with some local companies as the production rate would rapidly increase.

- MNCs buy local companies and expand their production with help of new
technology.

- They place orders for production with the small producers and sell these products under their own brand name to the customers worldwide.

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Question:
What are the various ways in which MNCs set up, or control, production in other countries?