CBSE Class 10 Answered

MNCs are spreading their production across countries in many ways. Large MNCs set up production units jointly with local companies in a country. Many a times, MNCs buy local companies and then start expanding their production activities.

In developing nations, large MNCs give orders for production to small producers and groups. Footwear, garments and sports items are some commodities which are produced at a local level around the world. Later, the MNCs gives them their brand name and sell them to consumers.

For example, Cargill Foods, an American MNC acquired several small companies such as Parakh Foods in India. Cargill Foods is now the largest producer of edible oil in India