"Large companies with a huge wealth, power and reach can manipulate the market in various ways" - Justify this statement with the help of suitable examples.
★ Class 10 CBSE ★
Answers
Answered by
32
Hey...!!
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1 - Large MNCs sometimes have their net worths more than the wealth of governments. Money and muscle power plays a huge role here.
2 - As we know MNCs always favour to get the most out of the least investments, so, because of their assets, markets are easily manipulated.
3 - Also, with the high level of technology and capacity to mass produce for large demand, MNCs can easily eliminate local competition.
4 - This leaves consumers with very little choice to choose from, leaving no room for new companies to come up.
5 - For example, a branded goods company X has huge assets in London and is starting up large scale production in India. The, indigenous companies here are relatively new and thriving. In a years time, almost all consumers are switching over to the products of X. The extreme level of competition leaves the indigenous companies no choice but to face huge losses or quit altogether
__________
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I Hope it's help you..
__________
__________
1 - Large MNCs sometimes have their net worths more than the wealth of governments. Money and muscle power plays a huge role here.
2 - As we know MNCs always favour to get the most out of the least investments, so, because of their assets, markets are easily manipulated.
3 - Also, with the high level of technology and capacity to mass produce for large demand, MNCs can easily eliminate local competition.
4 - This leaves consumers with very little choice to choose from, leaving no room for new companies to come up.
5 - For example, a branded goods company X has huge assets in London and is starting up large scale production in India. The, indigenous companies here are relatively new and thriving. In a years time, almost all consumers are switching over to the products of X. The extreme level of competition leaves the indigenous companies no choice but to face huge losses or quit altogether
__________
__________
I Hope it's help you..
GauravSaxena01:
thanks
☺☺
Answered by
14
Yeah it's really a true statement that Large companies voliate the market rules and also WTO rules and regulations with the help of their renounced personality or their CEO
- Because their market and quality is very high we would like and feel royal to purchase those products
Examples are - Microsoft, Amazon many big companies even though in you tube larger people use their identity and manipulate the rules of YouTube
- Because their market and quality is very high we would like and feel royal to purchase those products
Examples are - Microsoft, Amazon many big companies even though in you tube larger people use their identity and manipulate the rules of YouTube
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