Question

5. How do Multi-national Companies manage
to keep the cost of production of their goods
low ? Explain with examples.​

Answer 1

Answer:

To keep the cost of production of their goods low, they also set-up their production centre near market, e.g. due to low cost of product (i.e., low labour cost, low raw material prices) MNCs set-up their factories in developing countries like India, China, Vietnam.

Answer 2

Explanation:

MNCs usually set up offices and factories in regions where they can get cheap labour and other resources. This is done so that the cost of production is low and to maximize profits.

For example, a large MNC, producing industrial equipment, designs its products in research centres in the United States, and then has the components manufactured in China. These are then shipped to Mexico and Eastern Europe where the products are assembled and the finished products are sold all over the world. Meanwhile, the company's customer care is carried out through call centres in India.

Hope it's helpful...

$\huge Mark\:As\:BRAINLIEST....$