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.
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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.