Advantages of Spreading Out MNC in Different Countries
Advantages of Spreading Out MNC in Different Countries
Advantages of Spreading out MNC in different countriesThe nature of working of a large MNC is a complex process. An example given below will describe the working of MNC. Suppose a large MNC produces industrial equipment, designs its products in research centres in the United States and manufactures its components in China. These then shipped to Mexico and Eastern Europe where the products are assembled the finished products are sold all over the world. At the same time, the company’:
Customer care is carried out through call centres located in India. This is how at MNC works this example, the MNC is not only selling its finished products globally, but more important, the goods and services are produced globally. As a result, production is organised in increasingly complex ways. The production Process is divided into small parts and spread out across the globe.
Advantage of Spreading Out MNC in Different Countries: And the above example, China provides the advantage of being a cheap manufacturing location. Mexico and Eastern Europe are useful for their closeness to the markets in the US and Europe. India has highly skilled engineers who can understand the technical aspects of production Also has educated English speaking youth who can provide customer care services.And all this causes about 50-60% cost-savings for the MNC. Thus, it can be said that the advantage of spreading out production across he borders to the multinationals can be truly irnmense.
Major advantages of MNC's are as follows:-
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