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

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Dhaval Vora

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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...
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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
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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
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Dislike Bookmark

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