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Which of the following is not a feature of a MultiNational Company?
  • a)
    It owns/controls production in more than one nation.
  • b)
    It sets up factories where it is close to the markets.
  • c)
    It organises production in complex ways.
  • d)
    It employs labour only from its own country
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Which of the following is not a feature of a MultiNational Company?a)I...
(D) It employs labour only from its own country.

Some features of MNC's
They base their operations in many different countries upon market demand and availability of cheap labour
They bring huge investments along with modern technology into production. They expand production by buying up local companies or entering into partnership with them.
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Community Answer
Which of the following is not a feature of a MultiNational Company?a)I...
**Explanation:**

A multinational company (MNC) is a company that operates in multiple countries and conducts business activities in various locations around the world. MNCs are characterized by their global presence and the fact that they own or control production facilities in more than one nation. They are involved in complex production processes and often set up factories in close proximity to their target markets to enhance efficiency and reduce transportation costs.

However, one feature that does not apply to a multinational company is that it employs labor only from its own country. MNCs typically hire employees from various countries where they operate. They may have headquarters in one country but have subsidiaries, branches, or production facilities in other countries. The workforce of MNCs is usually diverse and multinational, reflecting the company's global operations.

**Reasons why option 'D' is not a feature of a multinational company:**

1. **Diversity in the workforce:** MNCs operate in multiple countries and have a diverse workforce comprising employees from different nationalities. They hire local employees to benefit from their knowledge of the local market, language proficiency, and understanding of local culture. Additionally, MNCs may also hire expatriates from their home country to manage operations in foreign locations.
2. **Global talent pool:** MNCs aim to attract the best talent from around the world to enhance their competitiveness. They recruit skilled professionals and experts from various countries to leverage their knowledge and experience. This allows MNCs to benefit from a diverse range of perspectives and skills, leading to innovation and improved business performance.
3. **Adapting to local conditions:** MNCs understand the importance of adapting to local conditions and adhering to local labor laws. They often provide training and development programs for their employees to ensure compliance with local regulations and to foster a positive work environment. By hiring local labor, MNCs can better understand the cultural nuances and preferences of the target market, which can contribute to their success.
4. **Promoting international cooperation:** MNCs actively promote international cooperation and cultural exchange through their diverse workforce. Employees from different backgrounds collaborate and share their knowledge and experiences, leading to cross-cultural understanding and the development of innovative solutions.
5. **Economic benefits:** MNCs can contribute to the economic development of the countries where they operate by creating job opportunities, transferring technology and skills, and generating tax revenues. By employing local labor, MNCs support the growth of local economies and contribute to poverty reduction and increased standards of living.

In conclusion, employing labor only from its own country is not a feature of a multinational company. MNCs typically have a diverse multinational workforce, which allows them to leverage different perspectives, skills, and experiences to operate globally and adapt to local conditions.
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Read the source given below and answer the questions that follows:India has become a second home to many multinationals’ over the years. MNCs set up offices and factories for production in regions where they can get cheap labour and other resources. This is done so that the cost of production is low and the MNCs can earn greater profits. MNCs 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 of other factors of production is assured. But the most common route for MNC investments is to buy up local companies and then to expand production. MNCs with huge wealth can quite easily do so. To take an example, Cargill Foods, a very large American MNC, has bought over smaller Indian companies such as Parakh Foods. Parakh Foods had built a large marketing network in various parts of India, where its brand was well-reputed. Also, Parakh Foods had four oil refineries, whose control has now shifted to Cargill. Cargill is now the largest producer of edible oil in India, with a capacity to make 5 million pouches daily. Large MNCs in developed countries place orders for production with small producers. Garments, footwear, sports items are examples of industries where production is carried out by a large number of small producers around the world. The products are supplied to the MNCs, which then sell these under their own brand names to the customers. These large MNCs have tremendous power to determine price, quality, delivery, and labour conditions for these distant producers. Ford Motors, an American company, is one of the world’s largest automobile manufacturers with production spread over 26 countries of the world. Ford Motors came to India in 1995 and spent Rs. 1700 crore to set up a large plant near Chennai. This was done in collaboration with Mahindra and Mahindra, a major Indian manufacturer of jeeps and trucks.Answer the following MCQs by choosing the most appropriate optionQ. MNCs do not increase

Read the source given below and answer the questions that follows:India has become a second home to many multinationals’ over the years. MNCs set up offices and factories for production in regions where they can get cheap labour and other resources. This is done so that the cost of production is low and the MNCs can earn greater profits. MNCs 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 of other factors of production is assured. But the most common route for MNC investments is to buy up local companies and then to expand production. MNCs with huge wealth can quite easily do so. To take an example, Cargill Foods, a very large American MNC, has bought over smaller Indian companies such as Parakh Foods. Parakh Foods had built a large marketing network in various parts of India, where its brand was well-reputed. Also, Parakh Foods had four oil refineries, whose control has now shifted to Cargill. Cargill is now the largest producer of edible oil in India, with a capacity to make 5 million pouches daily. Large MNCs in developed countries place orders for production with small producers. Garments, footwear, sports items are examples of industries where production is carried out by a large number of small producers around the world. The products are supplied to the MNCs, which then sell these under their own brand names to the customers. These large MNCs have tremendous power to determine price, quality, delivery, and labour conditions for these distant producers. Ford Motors, an American company, is one of the world’s largest automobile manufacturers with production spread over 26 countries of the world. Ford Motors came to India in 1995 and spent Rs. 1700 crore to set up a large plant near Chennai. This was done in collaboration with Mahindra and Mahindra, a major Indian manufacturer of jeeps and trucks.Answer the following MCQs by choosing the most appropriate optionQ. In which regions MNCs set up offices and factories for production?

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Which of the following is not a feature of a MultiNational Company?a)It owns/controls production in more than one nation.b)It sets up factories where it is close to the markets.c)It organises production in complex ways.d)It employs labour only from its own countryCorrect answer is option 'D'. Can you explain this answer?
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Which of the following is not a feature of a MultiNational Company?a)It owns/controls production in more than one nation.b)It sets up factories where it is close to the markets.c)It organises production in complex ways.d)It employs labour only from its own countryCorrect answer is option 'D'. 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 Which of the following is not a feature of a MultiNational Company?a)It owns/controls production in more than one nation.b)It sets up factories where it is close to the markets.c)It organises production in complex ways.d)It employs labour only from its own countryCorrect answer is option 'D'. 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 Which of the following is not a feature of a MultiNational Company?a)It owns/controls production in more than one nation.b)It sets up factories where it is close to the markets.c)It organises production in complex ways.d)It employs labour only from its own countryCorrect answer is option 'D'. Can you explain this answer?.
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