How are M.N.Cs.spreading their production across countries? Expla… - Vidyadip

Question

How are M.N.Cs.spreading their production across countries? Explain with an example.

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Answer

MNC's are spreading their productions across the country by setting up offices and factories for production in regions where they can get cheap labour and other resources. This is done so that the cost of production is low and they can earn higher profits. For example: A large MNC producing industrial equipment designs its products in research centers in U.S.A. and then has the components manufactured in China. These are then shipped to Mexico and Eastern Europe where the products are assembled and the finished goods/products are sold all over the world. Meanwhile, the company's customer care is carried out through call centres located in India.

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