How do MNCs manage the production in other countries?
- MNCs not only sell their finished products globally, but more importantly, the goods and services are produced globally.
- As a result, production is organised in incr-easingly complex ways.
- The production process is divided into small parts and spread out across the globe.
- 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.
- India has highly skilled engineers, who can understand the technical aspects of production. It also has educated English-speaking youth who can provide customer care services. And all this probably can mean 50-60 per cent cost savings for the MNCs.