What are the various ways in which MNCs set up a control production in other countries?

Q.4:- What are the various ways in which MNCs set up a control production in other countries?

 

Answer:-

The various ways in which MNCs set up or control production in other countries are



(a) Buy up a local production company.
(b) Place orders for production with small producers, i.e., contract manufacturing.
(c) By setting up a partnership (joint venture) with a local company.
(d) Setting up their wholly owned subsidiary in the other country.
(e) By licensing or franchising their brand to a local company.



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