How do Multinational Companies manage to keep the cost of production of their goods low ? -SST 10th

How do Multinational Companies manage to keep the cost of production of their goods low ? -SST 10th
by

1 Answer

Answer :

Multinational Companies keep their cost of production low by: 1. They locate their factories and offices in regions where resources are not available readily but also at cheap prices.  2. The goods and services are not produced in one place but globally. For example, China is known as a cheap manufacturing location and India is known for its highly skilled engineers. 3. Production is organized in a way to gain maximum profits hence in complex ways. For example, Mexico is useful for its closeness to US market. MNCs save 50-60% of the cost this way.
by

Related questions

How do Multinational companies (MNCs) control production? Explain any three points. -SST 10th

Description : How do Multinational companies (MNCs) control production? Explain any three points. -SST 10th

Last Answer : The various ways in which MNCs set-up or control production in other countries are (i) By setting up partnerships with local companies. (ii) By using the local companies for supplies. (iii) By closely competing with the local companies or buying them up.

Analyse the importance of multinational companies in the globalisation process. -SST 10th

Description : Analyse the importance of multinational companies in the globalisation process. -SST 10th

Last Answer : 1. Globalization is a process of rapid interdependence and interconnectedness amongst the countries of the world. The Multinational Corporations (MNCs) have played a major role in stimulating and spreading ... linkage of countries and the important role played by the MNCs in such a scenario.

How are local companies benefitted by collaborating with multinational companies ? Explain with examples. -SST 10th

Description : How are local companies benefitted by collaborating with multinational companies ? Explain with examples. -SST 10th

Last Answer : Local companies benefit by collaborating with MNCs: 1. MNCs can finance the additional investments for the local companies like buying new machinery for faster production. 2. MNCs may provide ... through a partnership with an MNC because the production and its efficiency would naturally increase.

What are the factors that multinational companies take into account before setting up a factory in different countries? -SST 10th

Description : What are the factors that multinational companies take into account before setting up a factory in different countries? -SST 10th

Last Answer : Before setting up a company or a factory an MNC takes into account the following things. (i) Availability of cheap labour and other resources: MNC's set up offices and factories for production ... regular basis. This reduces the cost of labour for the company and increases its margin of profit.

“The multinational companies (MNCs) choose China as an alternative location for investment?” Explain the statement. -SST 10th

Description : “The multinational companies (MNCs) choose China as an alternative location for investment?” Explain the statement. -SST 10th

Last Answer : (i) Since the revolution in 1949, China gradually came in the field of World economy. It attracted the foreign MNC’s because of its lowest economic structure. (ii) Wages were relatively low. (iii) China has the largest population besides labour. They also formed a large consumer base.

Describe any five factors that promote the Multinational Corporations (MNCs) to setup their production units in a particular place. -SST 10th

Description : Describe any five factors that promote the Multinational Corporations (MNCs) to setup their production units in a particular place. -SST 10th

Last Answer : Factors that promotes MNCs are:- 1.Close proximity to the market. 2.Availability of skilled and unskilled labour at low cost. 3.Assured production 4.Governments liberalized policies. 5.Developed infrastructure. 6.Safety measures.

How are multinational corporations (MNCs) controlling and spreading their production across the world ? Explain. -SST 10th

Description : How are multinational corporations (MNCs) controlling and spreading their production across the world ? Explain. -SST 10th

Last Answer : MNCs are spreading production across the world: 1. MNCs set up production jointly with the local companies of that area. This benefits the local companies as the MNC may bring with it better technology ... the product like garments are supplied to the MNC, they sell it under their own brand name.

Describe any three ways in which Multinational Corporations (MNCs) have spread their production and interaction with local producers in other countries. -SST 10th

Description : Describe any three ways in which Multinational Corporations (MNCs) have spread their production and interaction with local producers in other countries. -SST 10th

Last Answer : Multinational Corporations (MNCs) set up their factories or production units close to markets where they can get desired type of skilled or unskilled labour at low costs along with other factors ... for small producers and sell their products under their own brand name to the customers worldwide.

Explain any four ways in which multinational corporations have spread their production and interaction with local producers in various countries across the globe. -SST 10th

Description : Explain any four ways in which multinational corporations have spread their production and interaction with local producers in various countries across the globe. -SST 10th

Last Answer : The multinational corporations have spread their production and interaction with local producers in the following ways : (i) Setting up production jointly with local companies. They provide money for additional ... This helps in greater choice for consumers with a variety of goods at cheap prices.

Techno Ltd. buys goods in one country and sells these to buyers in another country. Techno Ltd. is A)an exporter VU Cafeteria B)a licensing company C)a trading company D)a multinational company

Description : Techno Ltd. buys goods in one country and sells these to buyers in another country. Techno Ltd. is A)an exporter VU Cafeteria B)a licensing company C)a trading company D)a multinational company

Last Answer : C)a trading company

What are gilt-edged securities? (1) Securities issued by the multinational companies. (2) Securities issued by the Government (3) Securities issued by the private sector (4) Securities issued by the joint venture companies

Description : What are gilt-edged securities? (1) Securities issued by the multinational companies. (2) Securities issued by the Government (3) Securities issued by the private sector (4) Securities issued by the joint venture companies

Last Answer : (2) Securities issued by the Government Explanation: Gilt-edged securities are bonds issued by governments. They are government securities, i.e., instruments issued by the government to borrow money from the market. Gilt-edged securities are a high-grade investment with very low risk.

Use of bioresources by multinational companies and organisations without authorisation from the concerned country and its people is called (a) bio-infringement (b) biopiracy (c) biodegradation (d) bioexploitation.

Description : Use of bioresources by multinational companies and organisations without authorisation from the concerned country and its people is called (a) bio-infringement (b) biopiracy (c) biodegradation (d) bioexploitation.

Last Answer : b) biopiracy

When two companies, who are usually rivals, come together to do business on a worldwide basis, this partnership is known as a 1. joint venture 2. strategic alliance 3. multinational venture 4. joint licensing 5. none of these

Description : When two companies, who are usually rivals, come together to do business on a worldwide basis, this partnership is known as a 1. joint venture 2. strategic alliance 3. multinational venture 4. joint licensing 5. none of these

Last Answer : strategic alliance

Which of the following is not a driver of globalization? A. The fragmentation of consumer tastes between countries. B. The competitive process. C. Multinational companies successfully persuading governments to lower trading barriers. D. The need to gain economies of scale.

Description : Which of the following is not a driver of globalization? A. The fragmentation of consumer tastes between countries. B. The competitive process. C. Multinational companies successfully persuading governments to lower trading barriers. D. The need to gain economies of scale.

Last Answer : The competitive process.

When two companies, who are usually rivals, come together to do business on a worldwide basis, this partnership is known as a A)joint venture B)strategic alliance C)multinational venture D)joint licensing

Description : When two companies, who are usually rivals, come together to do business on a worldwide basis, this partnership is known as a A)joint venture B)strategic alliance C)multinational venture D)joint licensing

Last Answer : B)strategic alliance

Use of bioresources by multinational companies and organisations without authorisation from the concerned country and its peoople is called (1) Bio-infringement (2) Biopiracy (3) Biodegradation (4) Bioexploitation

Description : Use of bioresources by multinational companies and organisations without authorisation from the concerned country and its peoople is called (1) Bio-infringement (2) Biopiracy (3) Biodegradation (4) Bioexploitation

Last Answer : (2) Biopiracy

The entry of the multinational companies in large numbers in the Indian market has created ……………………. . a. Huge Demand b. Huge Supply c. Tough Competition d. Huge Demand and Supply

Description : The entry of the multinational companies in large numbers in the Indian market has created ……………………. . a. Huge Demand b. Huge Supply c. Tough Competition d. Huge Demand and Supply

Last Answer : c. Tough Competition

What are gilt–edged securities? (1) Securities issued by the multinational companies. (2) Securities issued by the Government (3) Securities issued by the private sector (4) Securities issued by the joint venture companies

Description : What are gilt–edged securities? (1) Securities issued by the multinational companies. (2) Securities issued by the Government (3) Securities issued by the private sector (4) Securities issued by the joint venture companies 

Last Answer : Securities issued by the Government

Dynamic capabilities refer to: a) the firm's ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environmentsb) the link between subsidiary resource and multinational firm's competitive advantage in global markets. c) the firm's dynamic capability to find resources that are valuable, rare, difficult to imitate and can be exploited by the organization. d) the combination of individual technologies and production skills that underlie a company's multiple production lines and critically underpin the firm's competitive advantage.

Description : Dynamic capabilities refer to: a) the firm's ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environments. b) the link between ... underlie a company's multiple production lines and critically underpin the firm's competitive advantage

Last Answer : the firm's ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environments.

Consumer's sovereignty means: (1) consumers are free to spend their income as they like. (2) consumers have the power to manage the economy. (3) consumer's expenditures influence the allocation of resources. (4) consumer goods are free from government control,

Description : Consumer's sovereignty means: (1) consumers are free to spend their income as they like. (2) consumers have the power to manage the economy. (3) consumer's expenditures influence the allocation of resources. (4) consumer goods are free from government control,

Last Answer : (1) consumers are free to spend their income as they like. Explanation: Consumer sovereignty means that buyers ultimately determine which goods and services remain in production. In unrestricted markets, ... to motivate producers. So ultimately it means how the consumers want to spend their incomes.

Consumer’s sovereignty means: (1) consumers are free to spend their income as they like. (2) consumers have the power to manage the economy. (3) consumer’s expenditures influence the alloca tion of resources. (4) consumer goods are free from government control.

Description : Consumer’s sovereignty means: (1) consumers are free to spend their income as they like. (2) consumers have the power to manage the economy. (3) consumer’s expenditures influence the alloca tion of resources. (4) consumer goods are free from government control.

Last Answer :  consumers are free to spend their income as they like.

How do large companies manage and order business cards?

Description : How do large companies manage and order business cards?

Last Answer : Managing and printing business cards for a large number of employees can be a headache. Not only that, but with business card requests coming in from all different departments, sometimes the ... to Brandly, the industry's leader, although business card portals usually offer different kinds of

How do large companies manage and order business cards?

Description : How do large companies manage and order business cards?

Last Answer : Managing and printing business cards for a large number of employees can be a headache. Not only that, but with business card requests coming in from all different departments, sometimes the ... to Brandly, the industry's leader, although business card portals usually offer different kinds of

How do MNCs manage the production in other countries? -SST 10th

Description : How do MNCs manage the production in other countries? -SST 10th

Last Answer : . MNCs not only sell their finished products globally, but more importantly, the goods and services are produced globally. . As a result, production is organised in incr-easingly complex ways. . The ... care services. And all this probably can mean 50-60 per cent cost savings for the MNCs.

Global economies of scale arise when: a) a product or a process can be globally performed using cheap labour. b) a product or a process can be performed more cheaply thanks to alliances with multinational firms in other sectors. c) a product or a process can be performed more cheaply at greater volume than at lesser volume. d) a product or a process can be performed more cheaply thanks to globally performed cross-business cost-saving activities.

Description : Global economies of scale arise when: a) a product or a process can be globally performed using cheap labour. b) a product or a process can be performed more cheaply thanks to alliances ... a process can be performed more cheaply thanks to globally performed cross-business cost-saving activities.

Last Answer : a product or a process can be performed more cheaply at greater volume than at lesser volume.

Calculate the most appropriate unit cost for a distribution division of a multinational company using the following information. Miles travelled 636,500 Tonnes carried 2,479 Number of drivers 20 Hours worked by drivers 35,520 Tonnes miles carried 375,200 Cost incurred 562,800 (a) Rs .88 (b) Rs 1.50 (c) Rs 15.84 (d) Rs28, 140

Description : Calculate the most appropriate unit cost for a distribution division of a multinational company using the following information. Miles travelled 636,500 Tonnes carried 2,479 Number of drivers 20 Hours worked by drivers 35,520 Tonnes miles ... 800 (a) Rs .88 (b) Rs 1.50 (c) Rs 15.84 (d) Rs28, 140

Last Answer : (d) Rs28, 140

Two categories of expenses for merchandising companies are a. cost of goods sold and financing expenses. b. operating expenses and financing expenses. c. cost of goods sold and operating expenses. d. sales and cost of goods sold.

Description : Two categories of expenses for merchandising companies are a. cost of goods sold and financing expenses. b. operating expenses and financing expenses. c. cost of goods sold and operating expenses. d. sales and cost of goods sold.

Last Answer : c. cost of goods sold and operating expenses.

Explain by giving examples that Multinational Corporations (MNCs) are spreading their productions in different ways. -SST 10th

Description : Explain by giving examples that Multinational Corporations (MNCs) are spreading their productions in different ways. -SST 10th

Last Answer : Multinational Corporations are spreading their productions in different ways: 1.By setting up partnership with local companies. 2.By placing orders with local companies. For example, Garments, Footwear, ... companies. 4.By buying local companies- For example, Cargill buying Parakh foods in India.

Explain by giving examples that Multinational Corporations (MNCs) are spreading their productions in different ways. -SST 10th

Description : Explain by giving examples that Multinational Corporations (MNCs) are spreading their productions in different ways. -SST 10th

Last Answer : MNCs usually set up production units across the globe in places where the market is nearby, there is the availability of skilled and unskilled labour at low costs and other factors ... of such corporations has contributed to the interlinking of such widely dispersed locations across the globe.

How are multinational corporations (MNCs) controlling and spreading their productions across the world? Explain. -SST 10th

Description : How are multinational corporations (MNCs) controlling and spreading their productions across the world? Explain. -SST 10th

Last Answer : Multinational Corporations (MNCs) usually set up production where it is close to the markets, where there is skilled and unskilled labour available at low costs and where the availability ... are spreading their production and interacting with local producers in various countries across the globe.

Explain by giving examples that Multinational Corporations (MNCs) are spreading their productions in different ways. -SST 10th

Description : Explain by giving examples that Multinational Corporations (MNCs) are spreading their productions in different ways. -SST 10th

Last Answer : Multinational Corporations are spreading their productions in different ways: (i) By setting up partnership with local companies. (ii) By placing orders with local companies. For example, garments, ... had built a large marketing network in various part of India, where its brand was wellreputed.

How are Multinational Corporations (MNCs) controlling and spreading their productions across the world ? -SST 10th

Description : How are Multinational Corporations (MNCs) controlling and spreading their productions across the world ? -SST 10th

Last Answer : The Multinational Corporations (MNCs) are controlling and spreading their production across the world in the following ways: (i) MNCs Set-up their production units close to market. (ii) MNCs ... , quality, delivery and labour conditions for distant producers. (vi) By purchasing local companies.

Energy monitoring and targeting is built on the principle of ― ‖. a)production can be reduced to achieve reduced energy consumption‖ b)Consumption of energy is proportional to production rate‖ c)You cannot manage what you do not measure‖ d)None of the above

Description : Energy monitoring and targeting is built on the principle of ― ‖. a)production can be reduced to achieve reduced energy consumption‖ b)Consumption of energy is proportional to production rate‖ c)You cannot manage what you do not measure‖ d)None of the above

Last Answer : You cannot manage what you do not measure‖

Energy monitoring and targeting is built on the principle of ― _____‖ a) ―production can be reduced to achieve reduced energy consumption‖ b) ―Consumption of energy is proportional to production rate‖ c) ―You cannot manage what you do not measure‖ d) None of the above.

Description : Energy monitoring and targeting is built on the principle of ― _____‖ a) ―production can be reduced to achieve reduced energy consumption‖ b) ―Consumption of energy is proportional to production rate‖ c) ―You cannot manage what you do not measure‖ d) None of the above.

Last Answer : You cannot manage what you do not measure

Why was there a protest against a multinational company in the city of Cochabamba? -SST 10th

Description : Why was there a protest against a multinational company in the city of Cochabamba? -SST 10th

Last Answer : . The World Bank pressurised the government of Cochabamba to give up its control of municipal water supply. . The government sold these rights to a multinational company. . The company immediately ... country where average income was around 5,000 per month. This led to spontaneous popular protest.

What is globalisation? Describe the role of Multinational Corporations (MNCs) in promoting globalisation process. -SST 10th

Description : What is globalisation? Describe the role of Multinational Corporations (MNCs) in promoting globalisation process. -SST 10th

Last Answer : Globalisation is the process of rapid integration or interconnection between’ countries. Role of MNCs: . By more flow of manpower . Investment . Technology . Goods . Services .Latest education

What is globalisation ? Describe the role of Multinational Corporations (MNCs) in promoting globalisation process. -SST 10th

Description : What is globalisation ? Describe the role of Multinational Corporations (MNCs) in promoting globalisation process. -SST 10th

Last Answer : 1. Globalization is a process of rapid interdependence and interconnectedness amongst the countries of the world. The Multinational Corporations (MNCs) have played a major role in stimulating and spreading ... the globe. This process, in turn, has contributed to the growth of globalization process.

Explain the role of multinational corporations in the globalization process. -SST 10th

Description : Explain the role of multinational corporations in the globalization process. -SST 10th

Last Answer : 1. Globalization is a process of rapid interdependence and interconnectedness amongst the countries of the world. The Multinational Corporations (MNCs) have played a major role in stimulating and spreading ... the globe. This process, in turn, has contributed to the growth of globalization process.

Enumerate any three features of Multinational Corportions. -SST 10th

Description : Enumerate any three features of Multinational Corportions. -SST 10th

Last Answer : Multinational Companies (MNCs) are the companies that owns or controls the production of their goods in more than one country. The main features of MNCs are : (a) They set up their factories and ... is low and higher profits can be earned. (c) They produce and sell their finished products globally.

Describe with an example the role of multinational corporations in the process of globalisation. -SST 10th

Description : Describe with an example the role of multinational corporations in the process of globalisation. -SST 10th

Last Answer : MNCs have played a major role in the process of globalisation. (i) MNCs are in search for locations around the world that are favourable for their production activities. (ii) Foreign ... automobiles to be produced in India. All these processes will result in the interlinking of production.

Enumerate any three features of Multinational Corporations. -SST 10th

Description : Enumerate any three features of Multinational Corporations. -SST 10th

Last Answer : Multinational corporation (MNCs) are the companies that own or controls the production of their goods in more than one country. The main features of MNCs are : (i) They Set-up their factories and ... be earned. (iii) They set up their units where they can get cheap labour and other resources.

Explain the role of Multinational Corporations in the globalisation process. -SST 10th

Description : Explain the role of Multinational Corporations in the globalisation process. -SST 10th

Last Answer : MNCs play an important role in the globalisation process. (i) MNCs control production in more than one country. (ii) They compete with the local producers directly even ... the other consumer. The recent advancement in technology, transport and communication systems has enhanced globalisation.

Elaborate any three disadvantages of Multinational Corporations. -SST 10th

Description : Elaborate any three disadvantages of Multinational Corporations. -SST 10th

Last Answer : The disadvantages of MNCs are : (i) Small manufacturers like-batteries, capacitors, plastic toys, tyres, dairy products and vegetable oil were victims of competition. (ii) Closing down of ... of Government's changed policies such as allowing import of the goods which were previously not allowed.

Which generation raises voices against economic imperialism of the multinational corporations having their roots in the developed countries? a) Third Generation b) Second generation c) First Generation d) None of these

Description : Which generation raises voices against economic imperialism of the multinational corporations having their roots in the developed countries? a) Third Generation b) Second generation c) First Generation d) None of these

Last Answer : a) Third Generation

What is the purpose of the CAGE framework? a) The CAGE framework investigates to what extent home demand, home factor conditions and domestic rivalry are important to multinational firms. b) The CAGE framework analyses bilateral differences and commonalities between two countries. c) The CAGE framework is a broad framework to help managers understand the environment in which their business operates. d) The CAGE framework a checklist for forecasting political, economic, strategic or technological factors.

Description : What is the purpose of the CAGE framework? a) The CAGE framework investigates to what extent home demand, home factor conditions and domestic rivalry are important to multinational firms. ... d) The CAGE framework a checklist for forecasting political, economic, strategic or technological factors.

Last Answer : The CAGE framework analyses bilateral differences and commonalities between two countries.

A Free Trade Zone is an area 1. where goods are traded free of cost 2. where goods are traded through barter 3. where there are no customs duties 4. where government controls production and distribution 5. None of these

Description : A Free Trade Zone is an area 1. where goods are traded free of cost 2. where goods are traded through barter 3. where there are no customs duties 4. where government controls production and distribution 5. None of these

Last Answer : where there are no customs duties

Which of the following best defines price discrimination? a. charging different prices on the basis of race b. charging different prices for goods with different costs of production c. charging different prices based on cost-of-service differences d. selling a certain product of given quality and cost per unit at different prices to different buyers

Description : Which of the following best defines price discrimination? a. charging different prices on the basis of race b. charging different prices for goods with different costs of production c. charging ... a certain product of given quality and cost per unit at different prices to different buyers

Last Answer : d. selling a certain product of given quality and cost per unit at different prices to different buyers

Calculate value of closing stock from the following: Opening stock of finished goods (500 units) : Rs. 2,000 Cost of production (10000 units) : Rs. 50,000Closing stock (1000 units):? (a) Rs. 4,000 (b) Rs. 4,500 (c) Rs. 5,000 (d) Rs. 6,000

Description : Calculate value of closing stock from the following: Opening stock of finished goods (500 units) : Rs. 2,000 Cost of production (10000 units) : Rs. 50,000Closing stock (1000 units):? (a) Rs. 4,000 (b) Rs. 4,500 (c) Rs. 5,000 (d) Rs. 6,000

Last Answer : (b) Rs. 4,500

As per the Competition Act, 2002, the sale of goods at a price, which is below the cost of production with a view to eliminate the competitors is called __________. a) predatory price b) preparatory price c) entry barrier price d) exit barrier price

Description : As per the Competition Act, 2002, the sale of goods at a price, which is below the cost of production with a view to eliminate the competitors is called __________. a) predatory price b) preparatory price c) entry barrier price d) exit barrier price

Last Answer : a) predatory price

Operating ratio establishes the relationship between --------------- and net sales a) Cost of goods sold b) Cost of sales c) Cost of production d) Operating cost

Description : Operating ratio establishes the relationship between --------------- and net sales a) Cost of goods sold b) Cost of sales c) Cost of production d) Operating cost

Last Answer : d) Operating cost