Why do you think the company wants to develop India as a base for manufacturing car components for its global operations? Discuss the following factors.
(a) Cost of labour and other resources in India.
(b) The presence of several local manufacturers who supply auto-parts to Ford Motors.
© Closeness to a large number of buyers in India and China.
The company wants to develop India as a base for manufacturing car components for the following reasons
(i) A number of local manufacturers are supplying car components to their Chennai plant and the MNC feels that they can supply to their other plants across the world.
(ii) Cost of labour and materials is very low in India, which will result in more profits for the MNC.
(iii)The components can be supplied cheaply to other MNC car manufacturers in India and China.