What are the various ways in which MNCs set up, or control, production in other countries?

Question.

What are the various ways in which MNCs set up, or control, production in other countries?


Solution:

The various ways in which MNCs set up, or control, production in other countries are by buying out domestic companies or making the latter work for them. Sometimes, MNCs buy mass produce of domestic industries, and then sell it under their own brand name, at much higher rates, in foreign countries. MNCs look towards developing nations to set up trade because in such places, the labour and manufacturing costs are much lower.

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