Question

Explain the different ways by which Multinational Corporations manage to keep the

cost of production of their goods low?​

Answer 1

Step-by-step explanation:

1. MNCs setup production units in those countries where labour is available at cheaper

rate and has large market to sell their products.

2. MNCs setup production units jointly with some of the local companies of the countries.

3. MNCs buy up local companies and then expand production.

4. Maximum MNCs place orders for production to small producers and sell them under their

own brand name.