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How do Multinational… (Class 10 Social Science 2023, Q33a)

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Social ScienceCBSE Class 10 · Board exam 2023, set 32/2/1 · 5 marks · Long answer

CBSE Class 10 Social Science 2023: question 33(a)

Set in the CBSE Class 10 board exam of 2023, paper 32/2/1, section D, question 33(a), for 5 marks. Try it first; the hints and our step-by-step solution are below.

Q33(a) · 5 marks · Long answerGlobalisation and the Indian Economy

How do Multinational Corporations (MNCs) interlink production across countries? Explain with examples.

Source: official question paper from cbse.gov.in (PDF). See it in the full 2023 board paper, set 32/2/1.

Hints

Open one hint at a time and try again before the next.

Hint 1

Think about why an MNC chooses a particular country for a factory.

Hint 2

Recall the ways MNCs link up with local producers: partnerships and orders.

Hint 3

Support each point with an example such as Ford-Mahindra or Nike.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. MNCs set up factories and offices where production is cheapest and closest to markets, where skilled and unskilled labour is available at low cost and other factors of production are assured. This links many countries in one production chain.

    1 mark

  2. Goods and services are therefore produced globally, and production is organised in increasingly complex ways: different stages are carried out in different countries.

    1 mark

  3. MNCs set up production jointly with local companies. The local partner provides land and knows the local market, while the MNC provides investment and technology. Example: Ford Motors in India with Mahindra and Mahindra.

    1 mark

  4. Sometimes MNCs place orders for production with small producers. Garments, footwear and sports items are made by small producers for the MNC, which sells them under its own brand. Example: Nike and Adidas.

    1 mark

  5. Large MNCs buy local companies and then expand production. Because of their size and money power they exert strong control over production at distant locations. Example: Cargill Foods bought the Parakh Foods.

    1 mark

Answer: MNCs interlink production by locating units where costs are low, by partnering with local firms, by placing orders with small producers and by buying local firms.

Where the marks are

  • Sets up production near markets and where labour is cheap (1 mark)
  • Production organised globally in complex ways (1 mark)
  • Joint production with local companies, with example (1 mark)
  • Orders placed with small producers, with example (1 mark)
  • Strong influence over distant production, or takeover of local firms (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Globalisation and the Indian Economy, one at a time, marked against the answer key and marking points.Back to the full paper2023 board paper, set 32/2/1: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.