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Explain by giving examples that Multinational Corporations (MNCs) are spreading their production in different ways.
Answer:
Points to Remember
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Multinational Corporations are spreading their production across the world in various ways.
- The money that is spent to buy assets 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 .
- The most common route for MNC investments is to buy up local companies and then expand production. For Instance: Cargill Foods
Answer to be written in exam
Multinational Corporations are spreading their production across the world 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
.
MNCs provide money
for additional investments, like buying new machines for faster production.
- 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.
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