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In what ways MNCs control production with local companies?

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(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.

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

Related posts:

  1. What are the benefits of MNCs production to the local companies?
  2. In what ways has competition affected workers, Indian exporters and foreign MNCs in the garment industry?
  3. What are the various ways in which MNCs set up or control production in other countries?
  4. Which Indian companies have become MNCs with the competition in globalisation?
  5. Under what conditions do MNCs set up production?

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