Question

Explain by giving examples how Multinational Corporations (MNCs) are spreading their productions in different ways.

Answer 1

MNC may buy up local companies and then expand production.

The MNCs provide efficient managerial and advanced technology for faster production and efficient use of resources.

Large MNCs in developed countries place order for production with small producers.

They set up joint production units with local companies, they provide money for buying new machine for faster production.

For example; Coca-Cola is an MNC and it places order for production to many small companies like Superior Drinks.