80.1k views
0 votes
Explain by giving examples that Multinational Corporations (MNC s) are spreading their productions in different ways.

1 Answer

6 votes

Final answer:

Multinational corporations (MNCs) spread their productions through subsidiaries, outsourcing, and mergers/acquisitions.

Step-by-step explanation:

Multinational corporations (MNCs) spread their productions in different ways. One way is through the establishment of subsidiaries in different countries. These subsidiaries function as separate entities but are controlled by the parent company. For example, McDonald's is a multinational corporation that has subsidiaries in various countries. Each subsidiary operates its own restaurants but follows the guidelines and standards set by McDonald's.

Another way MNCs spread their productions is through outsourcing. They may contract with suppliers or manufacturers in different countries to produce their products or components. For instance, Apple outsources the manufacturing of its iPhones to companies in China.

Lastly, MNCs may engage in mergers and acquisitions to expand their productions in different countries. They acquire existing companies or merge with them to gain access to new markets and resources. An example of this is when Tata Motors, an Indian multinational, acquired Jaguar Land Rover, a British company, to expand its automotive production globally.

User Nikita Fedyashev
by
8.4k points