Explain any three ways in which multinational companies are spreading

1.	Explain any three ways in which multinational companies are spreading their production.
Answer» Multinational Corporations (MNCs) are spreading their production in different ways. Some of them are: By buying local companies and, then expanding production. For example, Cargill Foods, a very large American MNC, purchased small Indian company, Parakh foods. Cargill Foods is, now, the largest producer of edible oil in India with a capacity making 5 million pouches daily. By placing orders for production with small producers. Garments, footwears, sports items are examples where production is carried out by small producers for large MNCs around the world. By producing jointly with some of the local companies. It benefits the local company in two ways. 1. A MNC can provide money for additional investments. 2. A MNC can bring latest technology for production. For example, Ford Motors set up a large plant near Chennai, in collaboration with Mahindra and Mahindra, a major Indian manufacturer of jeeps and trucks.

Explain any three ways in which multinational companies are spreading their production.

Answer»

Multinational Corporations (MNCs) are spreading their production in different ways. Some of them are:

By buying local companies and, then expanding production. For example, Cargill Foods, a very large American MNC, purchased small Indian company, Parakh foods. Cargill Foods is, now, the largest producer of edible oil in India with a capacity making 5 million pouches daily.
By placing orders for production with small producers. Garments, footwears, sports items are examples where production is carried out by small producers for large MNCs around the world.
By producing jointly with some of the local companies. It benefits the local company in two ways.

1. A MNC can provide money for additional investments.

2. A MNC can bring latest technology for production.

For example, Ford Motors set up a large plant near Chennai, in collaboration with Mahindra and Mahindra, a major Indian manufacturer of jeeps and trucks.