Question
Explain the role of multinational corporations in the globalisation process.
Solution
MNCs are playing a major role in the globalisation process.
(i) MNCs is not only selling its finished products globally, but more important, the goods and services are produced globally.
(ii) The production process is divided into small parts and spread out across the global.
(iii) The result of greater foreign investment and greater foreign trade has been greater integration of production and markets across countries.
(iv) More and more goods and services, investments and technology are moving between countries.
(v) The technology has made much faster delivery of goods across long distances possible at lower costs.
