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 and resources are cheap. For example, an industrial equipment 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. Example: Ford Motors set up a plant in India jointly with Mahindra & Mahindra.

1. Buying up local companies: MNCs acquire local firms to expand production. Example: Cargill Foods (USA) 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, then sell under their own brand. Example: Women in Ludhiana making footballs for MNCs.

Thus, by partnering, outsourcing, or acquiring local companies, MNCs spread and interlink production across many countries.

Source: Chapter 4 — Globalisation and the Indian Economy, Sections: Production Across Countries, Interlinking Production Across Countries

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• Examiners expect 4–5 distinct methods with at least one example each for a 5-mark answer.
• Key terms to use: foreign investment, joint production, outsourcing, acquisition.
• The Ford & Cargill examples are directly from the textbook — always prefer textbook examples in board exams.
• Avoid writing a general essay; use numbered points for clarity and to ensure you cover all methods.
• End with a conclusion line summing up the interlinking idea — it signals complete understanding.