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The ways are:

(i)MNCs set up production where it is close to the markets; where there is skilled and unskilled labour available at low costs; and where the availability of other factors of production is assured.

(ii)In addition, MNCs might look for government policies that look after their interests.

(iii)MNCs set up production jointly with some of the local companies of these countries. But the most common route for MNC investments is to buy up local companies and then to expand production.

(iv)Large MNCs in developed countries place orders for production with small producers. Garments, footwear, sports items are examples of industries where production is carried out by a large number of small producers around the world.

(v)The products are supplied to the MNCs, which then sell these under their own brand names to the customers.