What are the various ways by which mnc's expand production?

MNC's are spreading their production across countries in many ways. Large MNC's set up production units jointly with local companies in a country. Many a times, MNC's buy local companies and then start expanding their production activities.

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Various ways by which MNCs expand their production are:

1. Undertaking the control of small companies in foreign countries.

i.e. The MNCs buy the smaller companies.

2. At times MNCs set up production jointly with some of the local companies of the countries.

3. Large MNCs in developed countries place orders for production with small producers.

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

4. Another way of increasing production is joint venture.
In this one MNC and other local company(but popular in country) work together and profit is divided equally.
MNCs get popularity and local companies become economic more stable and technologically advanced.

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