question_answer 7)

What is the role of MNCs in the globalization process?   

Answer:

Globalization is the rapid integration of the global economy through which countries interlink in a variety of ways. Globalization has enabled improvement in trade and communication with different countries. The silk route is one such example from earlier times. Over the last 20-30 years there has been a tremendous increase in globalization with the increase in the number of MNCs. MNCs are Multi National Corporations or companies which have set up production in more than one country. MNCs set up production worldwide where cheap labour is available, where markets are near, and where government policies look after their interests. Since the MNCs are producing as well as selling in many countries, they are interlinking the economies of these countries and thus speeding up globalization.