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What common route used by the MNC’s? Explain with example.

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Class 10th Important Question

CBSE 2022-2023

NCERT Social Science

Class 10th Economics CH: 4

CH:4 Social Science, Economics

Important Question for Board class 10th SST CH:4

Important Very Short Answer

Important Question Class 10th SSt Globalisation and the Indian Economy

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  1. The most common route for MNC investments is to buy up local companies and then to expand production. MNCs with huge wealth can quite easily do so. To take an example, Cargill Foods, a very large American MNC, has bought over smaller Indian companies such as Parakh Foods. Parakh Foods had built a large marketing network in various parts of India, where its brand was well-reputed. Also, Parakh Foods had four oil refineries, whose control has now shifted to Cargill. Cargill is now the largest producer of edible oil in India, with a capacity to make 5 million pouches daily.

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