Question

What are the general criteria for selecting a site for operation of multinational companies?

Answer 1

Answer:

Multinational Corporations (MNCs) set up their offices and factories only in certain areas with certain available factors to save the cost of production and achieve higher profit. MNCs set up offices and factories after due consideration of the following factors:

1. A multinational corporation is set up in those areas where there is easily available raw material in abundance. This will save the cost of procuring raw material and transporting it to their site of manufacturing.
2. It is set up in an area which has good transportation facilities from the manufacturing area to the market area.
3. Another factor considered in setting up of an MNC is the easy accessibility to the market.
4. MNCs are also willing to set up offices and factories in those areas which have favorable government policies.
5. Availability of cheap labour is another factor MNCs must take into consideration. Without cheap labour the cost of production will increase and the selling price will increase too which will not be favourable to the MNC in a competitive market.

Answer 2

What are the general criteria for selecting a site for operation of multinational companies?

Explanation:

• The general conditions for selecting the site to the multinational companies as a sight for the operations is the cost of the cost and the laws made by the existing and the availability of the market and the porting facilities and the availability of the raw matter.

• They own and control the production of the goods and the services in at least one of its home country and they can multinational enterprises and a transnational corporations and other international corporations. And even a stateless corporation.  

• And apart from this, they need to have strong financially sound architectures and have a strong buying and selling ecosystem in place that regulates the flow of the transactions. And has many other associated subsidiaries and host of the governmental incentives.

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