Question

What are MNCs? How the MNCs functions? What are the main guiding factors of

MNCs?​

Answer 1

Answer:

Multi national company

Answer 2

Step-by-step explanation:

MNCs are Multinational corporations. It is a company that owns or controls production

in more than one Nation. MNCs set up offices and factories for production in region where

they can get cheap labour and other resources, closer to the markets. This is done to reduce

the cost of production and the MNCs can earn greater profits. MNCs not only sell its finished

products globally but also the goods and services are produced globally. The production

process is divided into small parts and spread across the globe.

The main guiding factors of MNCs are:

(i) Cheap production

(ii) Closeness of production unit to the markets.

(iii) Favourable government policies.