How in MNCs Organized?

1.	How in MNCs Organized?
Answer» MNCs source raw material, employ labour and set up production facilities wherever the cost or rate is lowest in order to have economic advantages. They also scale up their production into large volumes in order to attain low cost per unit produced; this is called economic scale of production. The MNCs look to set up base in countries where political, bureaucratic, governmental and other local interference is minimum, the tax system is less stringent and concessions are extended by the local government to encourage industrial growth.\xa0

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