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.
