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Social Science: Globalisation and the Indian Economy - Production Across Countries

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How are Multinational Corporations spreading their products? Explain with examples.

How are multinational corporations (MNCs) controlling and spreading their productions across the world? Explain.

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Solution 1

A multinational company like LG conducts its industrial research in a western country like USA. After this, the production process of industrial components takes place where the labour is cheap like in a country like China. These are then shipped to Mexico and Eastern Europe where the products are assembled and the finished products are sold all over the world. Meanwhile, such a company’s customer care is handled by call centers situated in countries like India.

Solution 2

The MNCs control and spread their productions across the world by buying out domestic companies or making the latter work for them. Sometimes, MNCs buy mass-produced goods 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 these countries, the labour and manufacturing costs are much lower.

Concept: Production Across Countries
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