INTERLINKING PRODUCTION ACROSS COUNTRIES
- MNCs interlink the ir production process across different countries in various ways.
- Foreign Investment: The money that is spent to buy assets such as land, building, machines, and other equipment is called investment. So the Investment made by MNCs is called Foreign investment .
- Partnerships with local companies: MNCs set up production in collaboration with several of these countries' local enterprises . Such cooperative production has two advantages for the local company.
- MNCs provide money for additional investments, like buying new machines for faster production.
- MNCs could bring the newest production technology with them.
- The most common route for MNC investments is to buy up local companies and then expand production. For Instance: Cargill Foods, a huge American multinational corporation, has acquired smaller Indian enterprises such as Parakh Foods.
- MNCs have a significant influence on production in remote regions of the globe.
- As a result, production in these widely separated areas is becoming more interconnected.
