Question
Explain any four ways by which MNCs exercise control on production.

Answer

  1. MNC s setup production jointly with some of the local companies.
  2. They provide money for additional investments and expand production.
  3. They control production by placing order with small producers.
  4. By closely competing with local companies.
  5. They exercise tremendous power and determine the price.
  6. They also have the power to decide quality, delivery and labour conditions for distance producers.
  7. They have the power to sell their brand names to the customers.

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