By setting up their production plants in India, MNCs such as Ford Moto

1.	By setting up their production plants in India, MNCs such as Ford Motors tap the advantage not only of the large markets that countries such as India provide but also the lower costs of production. Explain the statement.
Answer» 1. MNCs such as Ford Motors tap the large markets in India by setting up their plants here. 2. They also lower their cost of production. 3. It is estimated that 50%-60% money they have saved on production by producing in India. 4. As labour is cheap here, other resources are also cheap. So they are producing goods at lower cost. 5. Apart from this, they are provided with educated youth in employment for lesser wages compared to other countries. 6. As the population in India and China alone accounts to 30% of the world population and Forbes surveys show that numbers of millionaires are increasing in these countries. 7. So MNCs have concentrated on tapping the markets here.

By setting up their production plants in India, MNCs such as Ford Motors tap the advantage not only of the large markets that countries such as India provide but also the lower costs of production. Explain the statement.

Answer»

1. MNCs such as Ford Motors tap the large markets in India by setting up their plants here.

2. They also lower their cost of production.

3. It is estimated that 50%-60% money they have saved on production by producing in India.

4. As labour is cheap here, other resources are also cheap. So they are producing goods at lower cost.

5. Apart from this, they are provided with educated youth in employment for lesser wages compared to other countries.

6. As the population in India and China alone accounts to 30% of the world population and Forbes surveys show that numbers of millionaires are increasing in these countries.

7. So MNCs have concentrated on tapping the markets here.

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