Explain the complex production process of MN'Cs. why do they do so?
Answers
Production is organised in an increasingly complex way by the MNC.To understand this let us take an example of a large MNC which produces industrial equipments.
1.It gets its products designed at the research centres of United States.
2.Then,it has its components manufactured in China as it is a cheap manufacturing location.
3.These are then shipped to Mexico and Eastern Europe due to their proximity to the markets of US and Europe.
4.Then,these products are assembled there and are sold all over the world.
5.Company's costumer care service is provided through the call centres of India as it has educated English speaking youth.
From,the above example we can notice that MNC is not only selling the products globally but also producing the goods globally which would be really beneficial to the MNCs who receive 50 to 60 cost savings.
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