MNCs set up offices and factories in regions where they can get cheap labour and other resources to lower the cost of production. The money spent by MNCs to buy assets like land, buildings, and machines is called foreign investment.

Another way is by setting up joint production with local companies. MNCs provide money for additional investments and bring the latest technology for production. They also exert influence by partnering with local companies, using them for supplies, or buying them up.

Additionally, MNCs control production by placing orders with small producers in industries like garments and footwear. The products are supplied to the MNCs, which sell them under their own brand names, controlling price, quality, and delivery.