Q3 of 11 Page 143

What are the various ways in which MNCs set up or control production in other countries? Why do developed countries want developing countries to liberalize their trade and investment you think should the developing countries demand in return?

The MNC’s buy up the local companies and then expand the production. The profits are shared in consensus among the companies.

The MNCs in developed countries places an order with the small producers and sell those products under their own brand name.


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1

What were the reasons for putting barriers to foreign trade and foreign investment by the Indian government? Why did it wish to remove these barriers?

 2

How would flexibility in labor laws help companies?

 4

Why do developed countries want developing countries to liberalize their trade and investment? What do you think should the developing countries demand in return?

 5

“The impact of globalization has not been uniform.” Explain this statement.