How are MNCs able to gain greater profit ????
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MNCs ᴀʀᴇ ᴀʙʟᴇ ᴛᴏ ᴇᴀʀɴ ʜᴜɢᴇ ᴘʀᴏғɪᴛs ᴀs ᴛʜᴇʏ ᴋᴇᴇᴘ ᴛʜᴇ ᴘʀɪᴄᴇ ᴏғ ᴘʀᴏᴅᴜᴄᴛɪᴏɴ ʟᴏᴡ. Aᴠᴀɪʟᴀʙɪʟɪᴛʏ ᴏғ ᴄʜᴇᴀᴘ ʟᴀʙᴏᴜʀ ᴀɴᴅ ᴀʙᴜɴᴅᴀɴᴛ ʀᴡᴀ ᴍᴀᴛᴇʀɪᴀʟs. Esᴛᴀʙʟɪsʜɪɴɢ ғᴀᴄᴛᴏʀɪᴇs ᴡʜᴇʀᴇ ᴀʙᴜɴᴅᴀɴᴛ ʀᴀᴡ ᴍᴀᴛᴇʀɪᴀʟ ɪs ᴀᴠᴀɪʟᴀʙʟᴇ ᴀᴛ ᴀ ʟᴏᴡ ᴄᴏsᴛ. Sᴇᴛᴛɪɴɢ ᴜᴘ ᴛʀᴀᴅᴇ ᴀɴᴅ ᴅɪsᴛʀɪʙᴜᴛɪᴏɴ ᴄᴇɴᴛʀᴇs ɪɴ ʀᴇɢɪᴏɴs ᴄʟᴏsᴇ ᴛᴏ ᴛʜᴇɪʀ ᴍᴀʀᴋᴇᴛs.
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Explanation:
MNCs are able to earn huge profits as they keep the price of production low. Availability of cheap labour and abundant rwa materials. Establishing factories where abundant raw material is available at a low cost. Setting up trade and distribution centres in regions close to their markets
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