In what ways MNCs control production with local companies?


(i) Large MNCs in developed countries place orders for production with small producers.

(ii) Garments, footwear, sports items are examples of industries where production is carried out by a large number of small producers around the world.

(iii) The products are supplied to the MNCs, which then sell these products under their own brand names to the customers.


(iv) These larger MNCs have tremendous power to determine price, quality, delivery and labour conditions for these distant producers.

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