What are MNCs? How the MNCs functions? What are the main guiding factors of
MNCs?
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Answer:
Multi national company
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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.
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