CBSE Class 10 Answered

Multinational companies usually set up their factories and offices for production in countries where land, labour and raw materials are available at much cheaper rates. This results in greater profits for the company.

For example, an MNC producing electronic items on a large scale, design their product research centers in United States. But since cheap labour is available in China, they manufacture the components in China. These manufactured parts are then shipped to east European countries, where various parts are assembled. It is from here that they are sold all over the world. The company’s customer care services and call centers are then established in India to register complaints and provide details about the working and functions of various electronic goods that are manufactured by the company.