how do multinational companies manage to keep the cost of production of their goods love explain with three examples
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Hii friend here is ur 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.
Hope it helps u ❤❤❤❤❤
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.
Hope it helps u ❤❤❤❤❤
2Shashank1111:
Well answered...
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Answered by
15
Hey,
Multinational corporation are
spreading their production in different ways :-
a) By setting up partnership with local companies.
b)By placing order with local companies. for example, garments ,footwear, Sports item etc.
c)By buying local companies. To take an example, Cargill foods a very large American MNCs has bought over smaller Indian companies such as Parakh foods .Parakh food had built a large marketing network in various part of India where its brand was well reputed.
Multinational corporation are
spreading their production in different ways :-
a) By setting up partnership with local companies.
b)By placing order with local companies. for example, garments ,footwear, Sports item etc.
c)By buying local companies. To take an example, Cargill foods a very large American MNCs has bought over smaller Indian companies such as Parakh foods .Parakh food had built a large marketing network in various part of India where its brand was well reputed.
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