How Do MNCs Interlink Production Across Countries

• Globalisation & Indian Economy (C10)

How Do MNCs Interlink Production Across Countries?

Answer

1. There are varieties of ways in which the MNCs are spreading their production and interacting with local producers in various countries across the globe.

2. By setting up partnership with local companies by using the local companies for supplies, by closely competing with the local companies or buying them.

3. MNCs are exerting a strong influence on production at the distant locations.

4. As a result, production in these widely dispersed locations is getting interlinked.

5. Example - Cargill Foods, Parakh Food