Spreading of Production by an MNC


 
 
Concept Explanation
 

Spreading of Production by an MNC

Spreading of Production by an MNC: The nature of working of a large MNC is a complex process.

An example given below will describe the working of MNC.

Suppose a large MNC produces industrial equipment, designs its products in research centres in the United States and manufactures its components in china. These are then shipped to Mexico and Eastern Europe where the products are assembled and the finished products are sold all over the world. At the same time, the company’s customer care is carried out through call centres located in India. This is how an MNC works. In this example, the MNC is not only selling its finished products globally, but more important, the goods and services are produced globally. As a result, production is organized in increasingly complex ways. The production process is divided into small parts and spread out across the globe.

 
 


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