Multinational Corporations (MNCs) interlink their production across countries in various ways:
(i) A multinational corporation (MNC) is usually a large company that owns and controls production in more than one nation. MNCs set up offices and factories for production in regions where they can easily get cheap labour and other resources. This is done to minimise the cost of production end to maximise the profit.
(ii) The MNCs not only sell its finished products globally, but more importantly, the goods and services are produced globally.
(iii) The production process is divided into small parts and spread out across the globe.
(iv) The most common route for MNC investments is to buy local companies and then to expand production. For example : Cargill Foods, a very large American MNC had bought over an Indian company Parakh Foods which had their large marketing network in various parts of India and also has a good reputation. With this advantage, Cargill is now the largest producer of edible oil in India.
(v) Also, MNCs control production by placing orders around the world with a large number of small producers of items, like garments, footwear, sports items, etc. Then MNC sells these products under its brand name.
(vi) As a result, production of MNCs in widely dispersed location is getting interlinked.