What is the most common route for mnc investment
Asked by admin @ in Social Sciences viewed by 269 People
What is the most common route for MNC'investment
Answered by admin @
The most common route for MNC investments is to buy up local companies and then to expand production. MNCs with huge money often do so. For example: A big food company in America (Cargill Foods) buys a smaller company in India (Parakh Foods).
Second best method is Setting upProduction jointly (or a joint venture) with some local companies in some other country. Setting up New Factories is altogether an expensive prospect and is usually not followed by MNCs.
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