Chapter 4

NCERT
Class 10
Economics
Solutions
4. What are the various ways in which MNCs set up, control or produce in other countries?

Question:

What are the various ways in which MNCs set up, control or produce inother countries?

Answer:

MNCs MNCs are companies that own or control production in more than one country. These companies set up their factories in countries where they can get cheap labor and other resources. Where government policies are also favorable to them. MNCs produce jointly with local companies in these countries, but mostly MNCs expand production by buying local companies. MNCs control production in various ways. In developed countries, large multinational companies order production from small producers. Clothing, footwear and sporting goods are industries that are produced by a large number of small producers around the world. These are supplied to multinational companies, who sell them to customers under their own brand names.

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