Register
Register

Q. 185.0( 1 Vote )

How do Multinatio

Answer :

Multinational Companies keep their cost of production low by:

1. They locate their factories and offices in regions where resources are not available readily but also at cheap prices.


2. The goods and services are not produced in one place but globally. For example, China is known as a cheap manufacturing location and India is known for its highly skilled engineers.


3. Production is organized in a way to gain maximum profits hence in complex ways. For example, Mexico is useful for its closeness to US market. MNCs save 50-60% of the cost this way.


Note: MNCs aim for maximum gain so they divide their production process in places where the labour and resources are most cheap. Hence, its name is ‘Multi-National Company’.


Rate this question :

How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
Try our Mini CourseMaster Important Topics in 7 DaysLearn from IITians, NITians, Doctors & Academic Experts
Dedicated counsellor for each student
24X7 Doubt Resolution
Daily Report Card
Detailed Performance Evaluation
caricature
view all courses
RELATED QUESTIONS :

How are multinatiSocial Science - Board Papers

How do MultinatioSocial Science - Board Papers

How have markets Social Science - Board Papers

In recent years, Social Science - Board Papers

Complete the follNCERT - Understanding Economic Development