MCQ
MNCs have been looking for locations around the world that would be cheap for their production. Evaluate the cost-effective methods adopted by the MNCs by identifying the appropriate statements among the following options:
i. Opting for a cheap manufacturing location.
ii. Setting up a production unit in the proximity of markets.
iii. Hiring highly skilled engineers at cheap rates from developing countries.
iv. Buy up local companies and expand production.
  • A
    All the statements are appropriate.
  • B
    Only statement iv is appropriate.
  • C
    Statements i, ii and iii are appropriate.
  • D
    Statements i and ii are appropriate.

Answer

(c) Statements i, ii and iii are appropriate.
Explanation:
Generally, MNCs buy up local companies as investments and then expand production.

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