How do MNCs control production in other countries?

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Set factories or production units close to the market

Set factories or production units where they can get skilled labour at a high cost

Set factories or production units where all the sources are available

Both (1) and (3)

answer is D.

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Detailed Solution

MNCs control production in other countries by setting up factories or production units close to the market and setting factories or production units where all the sources are available.
Multinational corporations establish their production units near the market, where they can get skilled labour at a cheaper rate. They ensure that all resources and factors important for production are available in that place. After that, they simply connect with local companies in that country and work with them. They even buy local companies and make investments in them. MNCs provide modern technology and investment to local companies to increase their production. There is one more thing that they do. They simply place many orders with small and local companies at a cheaper rate and sell them in international markets or countries globally at a higher price.

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