An MNC produces goodsa)in a stateb)locallyc)globallyd)in a countryCorr...
The correct answer is option C, globally.
Explanation:
When we say that an MNC (Multinational Corporation) produces goods globally, it means that the company operates in multiple countries and has production facilities in different parts of the world. This allows them to cater to a larger customer base and take advantage of various resources and markets available in different countries.
There are several reasons why an MNC would choose to produce goods globally:
1. Market Expansion: By producing goods globally, MNCs can reach a wider customer base in different countries. This helps them tap into new markets and increase their sales and revenue.
2. Resource Optimization: Different countries have different resources available, such as raw materials, labor, technology, etc. By setting up production facilities in multiple countries, MNCs can optimize their use of resources and reduce costs.
3. Access to Skilled Labor: Producing goods globally allows MNCs to access a diverse pool of skilled labor. They can hire workers with specific expertise or take advantage of lower labor costs in certain countries.
4. Reduction of Trade Barriers: By establishing production facilities in different countries, MNCs can reduce trade barriers and tariffs. This can result in lower costs and increased competitiveness in international markets.
5. Risk Diversification: Operating globally helps MNCs diversify their risks. If there are economic or political uncertainties in one country, they can still continue their operations in other countries.
6. Proximity to Customers: Setting up production facilities in different countries allows MNCs to be closer to their customers. This can lead to faster delivery times, better customer service, and improved customer satisfaction.
In conclusion, an MNC producing goods globally means that it operates in multiple countries and has production facilities in different parts of the world. This strategy allows them to expand their market reach, optimize resources, access skilled labor, reduce trade barriers, diversify risks, and be closer to their customers.
An MNC produces goodsa)in a stateb)locallyc)globallyd)in a countryCorr...
→ The MNC not only sells its finished goods globally, but more importantly, the goods and service are produced globally . So , option C is correct .