Read the source given below and answer the questions that follows: Having assured themselves of these conditions, MNCs set up factories and offices for production The money that is spent to buy assets such as land, building, machines and other equipment is called investment. Investment made by MNCs is called foreign investment. Any investment is made with the hope that these assets will earn profits. At times, MNCs set up production jointly with some of the local companies of these countries. The benefit to the local company of such joint production is two-fold. First, MNCs can provide money for additional investments, like buying new machines for faster production. Second, MNCs might bring with them the latest technology for production. But the most common route for MNC investments is to buy up local companies and then to expand production. 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. The products are supplied to the MNCs, which then sell these under their own brand names to the customers. These large MNCs have tremendous power to determine price, quality, delivery, and labour conditions for these distant producers.
What does large MNC do in developed countries?

Options

A. they release more capital in the market
B. they flood the markets with their products
C. they create artificial paucity of products
D. they place the orders for production with small suppliers

Answer

D

Explanation

they place the orders for production with small suppliers