wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

MNCs set up control in the production process in a foreign country by ____ .
(i) directly setting up offices and and factories.
(ii) taking over the production of local companies
(iii) placing orders from small producers
(iv) investing in assets such as machinery and land

A
(i), (ii), (iii) only
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
(i), (ii), (iv) only
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
(i), (iii), (iv) only
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
(i), (ii), (iii), (iv)
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
Open in App
Solution

The correct option is D (i), (ii), (iii), (iv)

Multinational Corporations (MNCs) set up their factories or production units close to markets where they can get desired type of skilled or unskilled labour at low costs along with other factors of production. After ensuring these conditions MNCs set up production units in the following ways :

  • Jointly with some local companies of the existing country.
  • Buy the local companies and then expand its production with the help of modern technology.
  • They place orders for small producers and sell these products under their own brand name to the customers worldwide.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Classification Based on Ownership of Industries
GEOGRAPHY
Watch in App
Join BYJU'S Learning Program
CrossIcon