1. Role of MNCs: A multinational corporation (MNC) is a company that owns or controls production in more than one nation; MNCs set up offices and factories in regions where they can get cheap labour and other resources, so that the cost of production is low and profits are greater. 2. Production spread over countries: MNCs set up production jointly with local companies, providing money for additional investments and bringing the latest technology; e.g. a car MNC may design the car in one country, produce parts in several countries and assemble them in another. 3. Buying up local companies: MNCs buy local companies and expand production - for example, Cargill Foods, a very large American MNC, bought over Parakh Foods and became the largest producer of edible oil in India. 4. Placing orders with small producers: The largest MNCs in garments, footwear and sports goods place orders for production with small producers across the world; the products are supplied to the MNCs which sell them under their own brand names to customers. 5. Foreign trade as a connector: Foreign trade connects the markets of different countries - producers can sell beyond the domestic market and buyers get a wider choice of goods; the prices of similar goods in the two markets tend to become equal. 6. Result: In this way production, markets, investment and technology in different countries become closely interlinked, and this rapid integration of countries is what we call globalisation.