The most common route for investment by MNCs in countries around the world is to

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Set up new factories.

Buy existing local companies.

Form partnerships with local companies.

All of these.

answer is D.

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Detailed Solution

MNCs most commonly buy local companies from other countries to expand their production. They buy companies with good market value and high brand value in the domestic market. For example, Cargill foods of the USA took over Parakh foods of India as Parakh foods had a good reputation and marketing network in the domestic market. Presently, Cargill foods are the largest producer of chocolates in India. Setting up factories will require more time for MNCs to gain consumers' trust and market value. Whereas forming a partnership will prevent them from gaining entire control of the business, profits will be distributed with the partnership firms.

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