How do MNCs manage the production in other countries?

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(i) MNC is not only selling its finished products globally, but more importantly, the goods and services are produced globally.

(ii) As a result, production is organised in increasingly complex ways.

(iii) The production process is divided into small parts and spread out across the globe.

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(iv) For 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.

(v) India has highly skilled engineers who can understand the technical aspects of production. It also has educated English-speaking youth who can provide customer case services. And all this probably can mean 50-60 per cent cost savings for the MNC.

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