Social Science — CBSE Class 10 board question

MNCs interlink production across countries in the following ways:

1. Setting up factories abroad: MNCs establish production units where labour is cheap, resources are available, and markets are large. For example, an MNC designs products in the USA, manufactures components in China, assembles them in Mexico/Eastern Europe, and runs customer care from India — saving 50–60% in costs.

1. Joint production with local companies: MNCs partner with local firms, providing capital and latest technology. E.g., Ford Motors set up a plant in India in collaboration with Mahindra & Mahindra.

1. Buying up local companies: MNCs acquire local firms to expand production. E.g., Cargill Foods bought Parakh Foods and became India's largest edible oil producer.

1. Placing orders with small producers: MNCs outsource production of garments, footwear, and sports items to small producers worldwide and sell under their own brand names.

Thus, by partnerships, outsourcing, and acquisitions, MNCs spread and interlink production globally.

Source: Chapter 4 — Globalisation and the Indian Economy

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• Examiners expect 4–5 distinct points with examples for a 5-mark answer.
• Always include at least two examples (Cargill/Ford/industrial equipment MNC) as they fetch marks.
• The key phrase to use is "interlink production" — show how different stages happen in different countries.
• Avoid repeating the same point; cover variety: joint ventures, buyouts, outsourcing, and direct investment.
• A brief concluding line summarising the outcome (production gets interlinked globally) rounds off the answer well.