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InthisexampletheMNCisnotonly for their closeness to the markets selling its finished products globally,in the US and Europe. India has but more important, the goods and highly skilled engineers who can services are produced globally. As understand the technical aspects of a result, production is organised in production. It also has educated increasingly complex ways. The English speaking youth who can production process is divided into provide customer care services. And small parts and spread out across the all this probably can mean 50-60 per globe. In the above example, China cent cost-savings for the MNC! provides the advantage of being a The advantage of spreading out cheap manufacturing location. production across the borders to the MexicoandEasternEuropeareuseful multinationals can be truly immense. LET’S WORK THIS OUT Complete the following statement to show how the production process in the garment industry is spread across countries. The brand tag says ‘Made in Thailand’ but they are not Thai products. We dissect the manufacturing process and look for the best solution at each step. We are doing it globally. In making garments, the company may, for example, get cotton fibre from Korea, ........ INTERLINKING PRODUCTION ACROSS COUNTRIES In general, MNCs set up production At times, MNCs set up production where it is close to the markets; wherejointly with some of the local there is skilled and unskilled labour companies of these countries. The available at low costs; and where the benefit to the local company of such availability of other factors of joint production is two-fold. First, production is assured. In addition, MNCs can provide money for MNCs might look for government additional investments, like buying policies that look after their interestnew machines for faster production. You will read more about the policies Second, MNCs might bring with them WE WILL SHIFT later in the chapter. the latest technology for production. THIS FACTORY TO ANOTHER COUNTRY. Havingassuredthemselvesofthese IT HAS BECOME conditions,MNCssetupfactoriesand EXPENSIVE HERE! officesforproduction.Themoneythat is spent to buy assets such as land, building, machines and other equipment is called investment. Investment made by MNCs is called foreign investment. Any investment is made with the hope that these assets will earn profits. G L OBALISA TION AND THE INDIAN E CONOMY 57 Reprint 2026-27