PRODUCTION ACROSS COUNTRIES - MNCs

  • Production was mostly organized within the countries until the middle of the twentieth century.
  • Previously, only raw materials, foodstuffs, and finished products traveled across boundaries.
  • For instance : colonies such as   India exported raw materials and food products and imported finished goods .
  • Trade was the primary means of connecting distant countries.

EMERGENCE OF MNCs

  • A multinational corporation (MNC) is a company that owns or controls production in multiple countries .
  • The production process is divided into small parts and spread out across the globe .
  • MNCs set up production where 
    • Cheap labor is available at low costs.
    • Availability of other f actors of production is assured.
    • Appropriate government policies.
  • For Instance:   Call center in Bengaluru was established by foreign companies and has access to the Internet and telecom equipment to help customers abroad with information and support.
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Davneet Singh

Davneet Singh has done his B.Tech from Indian Institute of Technology, Kanpur. He has been teaching from the past 14 years. He provides courses for Maths, Science, Social Science, Physics, Chemistry, Computer Science at Teachoo.