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Explain how MNCs are spreading their production across countries.

Asked by Topperlearning User 5th June 2015, 10:05 AM
Answered by Expert
Answer:

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. They provide advanced technology and managerial services to the enterprises established by them. Through these MNCs, technology has been transferred to developing countries. It has enabled them to produce quality goods and make them available in the international market. Thus, it paves the way to boost exports. Due to the flow of the MNCs capital in foreign currency, the availability of foreign exchange increases, which in turn enables the country to make payments for imports. Thus, MNCs are playing an important role by spreading their production across countries.

Answered by Expert 5th June 2015, 12:05 PM
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