How is the MNC able to cope with large demands all over the world and control prices?

Asked by Last Modified  

2 Answers

+1

Follow 1
Answer

Please enter your answer

Dhaval Vora

Tutor

Hi A MNC has operations in different countries like we can take example of unilever which manufactures Food & Consumer goods. Unilever in India is named as Hindustan Unilever Limited (HUL).In USA it is unilever.The demand planning for local products takes place locally & gets manufactured locally.Price...
read more
Hi A MNC has operations in different countries like we can take example of unilever which manufactures Food & Consumer goods. Unilever in India is named as Hindustan Unilever Limited (HUL).In USA it is unilever.The demand planning for local products takes place locally & gets manufactured locally.Price control is achieved using local production as if goods are imported then company will have to pay import duty which in turn will make prices go up.The other aspect of price control happens through regional demand fulfilment.In economics the term is called Economies of scale meaning the more the demand the more the production in local plants the more the utilization of capacity of existing plants & hence lower cost of production.The next important price control is local taxes.In countries where taxes are less prices go down.Last but not least lower wage rate countries. Happy Learning read less
Comments
Dislike Bookmark

Tutor

Hi A MNC has operations in different countries like we can take example of unilever which manufactures Food & Consumer goods. Unilever in India is named as Hindustan Unilever Limited (HUL).In USA it is unilever.The demand planning for local products takes place locally & gets manufactured locally.Price...
read more
Hi A MNC has operations in different countries like we can take example of unilever which manufactures Food & Consumer goods. Unilever in India is named as Hindustan Unilever Limited (HUL).In USA it is unilever.The demand planning for local products takes place locally & gets manufactured locally.Price control is achieved using local production as if goods are imported then company will have to pay import duty which in turn will make prices go up.The other aspect of price control happens through regional demand fulfilment.In economics the term is called Economies of scale meaning the more the demand the more the production in local plants the more the utilization of capacity of existing plants & hence lower cost of production.The next important price control is local taxes.In countries where taxes are less prices go down.Last but not least lower wage rate countries. Happy Learning read less
Comments
Dislike Bookmark

Related Questions

Explain any three common features of the popular struggles in Nepal and Bolivia.
Some important conclusions can be drawn out from the movement of Nepal and the struggle of Bolivia. i. The struggle in Bolivia was against one specific policy and the struggle in Nepal was about the foundations...
Pritty
0 0
5
"Transport routes are called the basic arteries of our economy." Support this statement with relevant examples.
Transport routes are called basic arteries of our economy because of the following reasons: (i) Dense network of transport is a pre-requisite for the economic development of a region or a country. (ii)...
Abinaya
Mention any two inland waterways of India. Write three characteristics of each.
Two inland waterways of India are: (i) The Brahmaputra river between Sadiya and Dhubri. (ii) The West-Coast canal in Kerala. Characteristics of Brahmaputra river between Sadiya and Dhubri are as follows: (i)...
Hari
0 0
7

how can i get  numbers of teachers who take class 10 tuition?
Hi, I'm teaching Math . U can contact me for online class. I have started batches at minimal charges.
Bindu
Who wrote "Vande Mataram"? When?
Bankimchandra chattopadhyay
Sainath

Now ask question in any of the 1000+ Categories, and get Answers from Tutors and Trainers on UrbanPro.com

Ask a Question

Related Lessons

GLOBAL WARMING - global warming has become one of the most important issue that the world is facing today.
GLOBAL WARMING Global warming refers to the increase in average temperature of the earth's surface during the last century due to human activities, primarily fossil fuel burning which...

Arshad Ali

0 0
0
What is basin

Jaikumar

0 0
0
smart learning
M

Mrs S.

0 0
0
Federalism (Class 10, Ch. 2)
Federalism is about sharing of power between states and centre. It is one of the foundational concepts of Indian democracy. The objective of federalism:- To accommodate diversity in religion, language,...
A

Aditi

0 0
0
Unknown Story of French Revolution
While the French Revolution (1789-1799) is often portrayed as a battle for liberty and equality, several lesser-known stories reveal the complexities of this transformative period. One such story involves...

Anamika

0 0
0

Recommended Articles

Quest Academy - Institute of the month

Quest Academy is a professional Bangalore based NEET and JEE (Main + Advanced) training institute. The academy was incorporated in 2015 to cater to the needs of students, who aim to crack competitive exams by connecting with the best brains around. The institute helps students enhance their skills and capabilities through...

Read full article >

Meet Sandhya R, a B.Sc tutor from Bangalore

Sandhya is a proactive educationalist. She conducts classes for CBSE, PUC, ICSE, I.B. and IGCSE. Having a 6-year experience in teaching, she connects with her students and provides tutoring as per their understanding. She mentors her students personally and strives them to achieve their goals with ease. Being an enthusiastic...

Read full article >

Meet Raghunandan.G.H, a B. Tech Tutor from...

Raghunandan is a passionate teacher with a decade of teaching experience. Being a skilled trainer with extensive knowledge, he provides high-quality BTech, Class 10 and Class 12 tuition classes. His methods of teaching with real-time examples makes difficult topics simple to understand. He explains every concept in-detail...

Read full article >

Meet Swati, a Hindi Tutor from Bangalore

Swati is a renowned Hindi tutor with 7 years of experience in teaching. She conducts classes for various students ranging from class 6- class 12 and also BA students. Having pursued her education at Madras University where she did her Masters in Hindi, Swati knows her way around students. She believes that each student...

Read full article >

Find Class X Tuition near you
Class X Tuition in Delhi
Class X Tuition in Bangalore
Class X Tuition in Hyderabad
Class X Tuition in Kolkata
Class X Tuition in Chennai
Class X Tuition in Mumbai
Class X Tuition in Pune
Class X Tuition in Noida
Class X Tuition in Lucknow
Class X Tuition in Gurgaon
Online Tuition Class 10

Looking for Class 10 Tuition ?

Learn from the Best Tutors on UrbanPro

Are you a Tutor or Training Institute?

Join UrbanPro Today to find students near you