why MNCs spread out production across the borders?
HarshRedliner:
So as to make their expenditure as cheaper as possible ... Like get cheap labour ... Factory installation cost is minimum etc
Answers
Answered by
21
Joint collaboration
Buying local company
Direct Investment
Hope it helps u.
Mark it as the brainliest please
Buying local company
Direct Investment
Hope it helps u.
Mark it as the brainliest please
Cheap labour in developing countries can be added
Mark it as the brainliest.
Answered by
21
MNCs spread out production across the borders, primarily to utilize the cheap labor available elsewhere and also to achieve ease of distribution.
Explanation:
- MNCs have a presence in a large number of countries across the globe. They function to achieve the lowest production cost and economies of scale.
- Therefore, MNCs intend to locate their production factories in regions that have affordable labor, and conducive trade regulation practices.
- Secondly, MNCs like Zara also spread their production centers in different countries to achieve ease of distribution.
- As customers across the globe buy their goods, shipping from one geographic location becomes costly and tenuous.
Learn more about MNCs:
How has the MNCs changed the world economy?
https://brainly.in/question/2818708
How establishment of multinational corporations MNCs Marked the true beginning of globalisation?
https://brainly.in/question/2314390
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