Class 10 Exam > Class 10 Questions > Where does an MNC set up production?a)Close t...
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Where does an MNC set up production?
- a)Close to the markets
- b)Close to the sea
- c)Close to the airport
- d)Close to the villages
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Where does an MNC set up production?a)Close to the marketsb)Close to t...
In general, MNCs set up production where it is close to the markets where there is skilled and unskilled labourj available at low costs and where the availability of other factors of production is assured. in addition, MNCs might look for government policies that look after theirs interest
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Community Answer
Where does an MNC set up production?a)Close to the marketsb)Close to t...
Importance of Proximity to Markets for MNCs
Multinational Corporations (MNCs) often prioritize setting up production facilities close to their target markets. This strategy is grounded in several key advantages:
1. Reduced Transportation Costs
- Establishing production near markets minimizes shipping expenses.
- Lower transportation costs lead to increased profitability and price competitiveness.
2. Faster Delivery Times
- Proximity enables quicker response to market demands.
- MNCs can provide timely deliveries, enhancing customer satisfaction.
3. Better Market Understanding
- Being close to the market allows MNCs to observe consumer behavior and preferences.
- This understanding aids in tailoring products to meet local needs.
4. Adaptability and Flexibility
- Local production facilitates faster adjustments to production processes based on market feedback.
- MNCs can swiftly innovate or change product features to align with market trends.
5. Enhanced Supply Chain Efficiency
- Proximity to suppliers and distributors streamlines the supply chain.
- This efficiency can result in reduced lead times and improved inventory management.
6. Strengthening Local Relationships
- Local production fosters relationships with stakeholders, including customers, suppliers, and government entities.
- Positive local engagement can aid in building brand loyalty and reputation.
In conclusion, setting up production close to markets allows MNCs to reduce costs, improve efficiency, and enhance their competitive edge. This strategic location choice is critical for success in a dynamic global economy.
Multinational Corporations (MNCs) often prioritize setting up production facilities close to their target markets. This strategy is grounded in several key advantages:
1. Reduced Transportation Costs
- Establishing production near markets minimizes shipping expenses.
- Lower transportation costs lead to increased profitability and price competitiveness.
2. Faster Delivery Times
- Proximity enables quicker response to market demands.
- MNCs can provide timely deliveries, enhancing customer satisfaction.
3. Better Market Understanding
- Being close to the market allows MNCs to observe consumer behavior and preferences.
- This understanding aids in tailoring products to meet local needs.
4. Adaptability and Flexibility
- Local production facilitates faster adjustments to production processes based on market feedback.
- MNCs can swiftly innovate or change product features to align with market trends.
5. Enhanced Supply Chain Efficiency
- Proximity to suppliers and distributors streamlines the supply chain.
- This efficiency can result in reduced lead times and improved inventory management.
6. Strengthening Local Relationships
- Local production fosters relationships with stakeholders, including customers, suppliers, and government entities.
- Positive local engagement can aid in building brand loyalty and reputation.
In conclusion, setting up production close to markets allows MNCs to reduce costs, improve efficiency, and enhance their competitive edge. This strategic location choice is critical for success in a dynamic global economy.
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Where does an MNC set up production?a)Close to the marketsb)Close to the seac)Close to the airportd)Close to the villagesCorrect answer is option 'A'. Can you explain this answer? for Class 10 2025 is part of Class 10 preparation. The Question and answers have been prepared according to the Class 10 exam syllabus. Information about Where does an MNC set up production?a)Close to the marketsb)Close to the seac)Close to the airportd)Close to the villagesCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Class 10 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Where does an MNC set up production?a)Close to the marketsb)Close to the seac)Close to the airportd)Close to the villagesCorrect answer is option 'A'. Can you explain this answer?.
Where does an MNC set up production?a)Close to the marketsb)Close to the seac)Close to the airportd)Close to the villagesCorrect answer is option 'A'. Can you explain this answer? for Class 10 2025 is part of Class 10 preparation. The Question and answers have been prepared according to the Class 10 exam syllabus. Information about Where does an MNC set up production?a)Close to the marketsb)Close to the seac)Close to the airportd)Close to the villagesCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Class 10 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Where does an MNC set up production?a)Close to the marketsb)Close to the seac)Close to the airportd)Close to the villagesCorrect answer is option 'A'. Can you explain this answer?.
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