Question
How are Multinational Corporations spreading their products? Explain with examples.
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Answer
MNC's spread their products by the following ways:-
- They set up production jointly with local companies. They provide money for additional investments like buying new machines for faster production.
- MNC may buy up local companies and then expand production. For example: Cargil Foods, a very large MNC (USA), has bought smaller Indian companies such as Parekh Foods.
- The MNCs provide efficient managerial and advanced technology for faster production and efficient use of resources.
- Large MNCs in developed countries place orders for production with small producers. Examples are Garments, footwear, sports items etc. The products are supplied to the MNCs, which then sell these under their own brand names to the customers.
- MNC's procure raw materials for their production from local producers which has helped the latter to prosper and grow.
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