Economics
Nearly all major multinationals are American, Japanese or European, such as Nike, Coca-Cola, Pepsi, Honda, Nokia. Can you guess why?
Global & Ind Econ
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Answer
The dominance of American, Japanese, and European multinational corporations (MNCs) can be attributed to following factors:
- MNCs thrive in countries with well-established infrastructures. The United States, Japan, and Western European nations possess advanced infrastructures such as a well-trained labour force, advanced technology, stable governance and physical networks like roads, bridges, ports, and railways.
- These countries are rich and therefore they have MNCs with huge capital and resources.
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Related Questions
Read the passage and answer the questions.
Ford Motors, an American company, is one of the world’s largest automobile manufacturers with production spread over 26 countries of the world. Ford Motors came to India in 1995 and spent Rs. 1700 crore to set up a large plant near Chennai. This was done in collaboration with Mahindra and Mahindra, a major Indian manufacturer of jeeps and trucks. By the year 2017, Ford Motors was selling 88,000 cars in the Indian markets, while another 1,81,000 cars were exported from India to South Africa, Mexico, Brazil and United States of America. The company wants to develop Ford India as a component supplying base for its other plants across the globe.
In what ways will the production of cars by Ford Motors in India lead to interlinking of production?
In what ways is a MNC different from other companies?
What was the main channel connecting countries in the past? How is it different now?
Distinguish between foreign trade and foreign investment.