CBSE Class 10 Social Science 2015 Term 2 Set 1 Delhi Paper

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Question : 27
Total: 31
How are multinational corporations (MNCs) controlling and spreading their productions across the world? Explain.
Solution:  
MNCs are controlling and spreading their productions in the following ways :
(i) The most common strategy of a Multinational Corporation is, first, to buy a local company and then to expand its production.
(ii) Depending on the product, MNCs adopt another strategies also. In labour intensive products like garments and the customers. MNCs are setting up partnerships with local companies.
(iii) MNCs are using the local companies for supplying raw material or accessories.
(iv) MNCs are closely competing with the local companies.
(v) MNCs are taking over local companies with immense money power.
Thus, MNCs are exerting a strong influence on production at distant locations.
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