10th Class Social Science Solved Paper - Social Science-2017 Outside Delhi Set-I

  • question_answer
    How do Multi-National Corporations (MNCs) interlink production countries? Explain with examples.

    Answer:

    Multi-National Corporation (MNC) interlink their production across countries in various ways:
    (i) A multinational corporation (MNC) is usually a large company that owns and controls production in more than one nation. MNCs set up offices and factories for production in regions where they can easily get cheap labour and other resources. This is done to minimise the cost of production end to maximise the profit.
    (ii) The MNC is not only selling its finished products globally, but more important, the goods and services are produced globally.
    (iii) The production process is divided into small parts and spread out across the globe.
    (iv) The most common route for MNCs investments is to buy local companies and then to expand production. For example-Cargill Foods, a very large American MNC had bought over Indian company Parakh foods which had their large marketing network in various parts of India and also has a good reputation. With this advantage, Cargill is now the largest producer of edible oil in India.
    (v) Also, MNCs control production by placing orders around the world with a large number of small producers of items, like garments, footwear?s, sports items, etc. Then MNC sells these products under its brand name.
    (vi) As a result, production of MNCs is widely dispersed location is getting interlinked.


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