CBSE Notes, Lectures

CBSE - Economics - Globalisation and the Indian Economy

Globalisation and the Indian Economy

Long Answer Type

What are the ways through which MNCs spread their production and interact with local producers?

There are a variety of ways in which MNCs spread their production and interact with local producers in various countries across the globe.
(i) Setting up partnerships with local companies,
(ii) Using the local companies for supplies
(iii) Closely competing with the local companies or buying them up,
(iv) MNCs are exerting a strong influence on production at these distant locations so that they could produce at cheapest price and earn profit

.