Question

Multinational corporations might own a) Natural resources in another country. Give 3 examples of these natural resources. b) Production facilities in another country. Give 3 examples of production facilities. c) Distribution facilities in another country. Give 3 examples of distribution facilities.

Answer 1

A)there could be various instances where multinational corporation is owning natural resources into the other country in order to exploit the benefits arising out of those natural resources. Examples could be

1. Oil reserves held by Reliance Limited in gulf countries

2. Gold reserves held by Titan in other countries through subsidary

3. Natural gas reserves held by ONGC limited

B). Production facilities are often put by companies into other countries because they want to benefit from the manufacturing subsidies which are received in higher quantities in other country.

1) Tesla putting up with production plant in China

2) Apple putting up the manufacturing plant in India

3) Airtel manufacturing plant in South Africa.

C).various multinational companies has distribution facilities associated in other countries to gain from the advantage of supply chain logistics. These can be exampled through-

1. Walmart acquiring Flipkart in order to strengthen is distribution system in India.

2. Tata Motors Acquiring Jaguar and land rover to to strengthen its distribution system in Britain and China.

3. Domino's acquiring Jubilant food in order to distribute pizzas in India.