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

Asked by Last Modified  

2 Answers

+1 Class IX-X Tuition

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 giving four reasons how tourism as an industry has alright future in India.
Tourism has a bright future in India because (i) India has many historical places and beautiful landscapes that tourists like to visit. (ii) A stable political climate like in India triggers more Foreign...
Rituraj
Describe any two merits of railways and any two problems being faced by the railways.
Merits of railways are: (i) They make it possible to conduct multifarious activities like business, sightseeing, pilgrimage along with transportation of goods over longer distances. (ii) They bind the...
Arvind
0 0
5
"Road transport in India is not competitive but complementary to railways." Justify the statement by giving four points.
Road transport in India is complimentary to railways. There is no competition between the two lifelines of Indian economy. They corroborate rather compete with each other. Unless we have capable and proper...
Syed
0 0
5
Which sector has emerged as the largest producing sector in the Indian economy in the last decade? Give reasons.
It appears that agriculture ..lot of people 80 to 90 was in it in 190..by now in2018..dependant ratio is 50%..Are engaged but productivity is low .because of poor monsoons..& no govt support..it is...
Shreyas
How do industries create thermal and noise pollution?
Noise pollution is caused due to heavy machineries like turbines, generators, pumps, that runs inside industries like thermal power plant, automobile plant. Thermal pollution is caused due to discharge...
Kirti
0 0
5

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

Ask a Question

Related Lessons

Revolt of 1857
https://vz-3ad30922-ba4.b-cdn.net/d27fc77a-e5bd-44f6-89a9-679391aef35f/play_480p.mp4

Shivam Verma V.

0 0
0
Worksheet social science The French Revolution
1. ______ country became full-fledged territorial state in Europe in the year 1789. 2. The treaty of Vienna was signed in _____ 3. _____ destroyed democracy in France. 4. ______ country is the part...

Dr. Snj Radhika

0 0
0
How can we deal with various contemporary threats to security?
(i) The various contemporary threats to security are the threats to both traditional and nontraditional nations of security. Most of these threats to security require cooperation rather than military...

Sujoy Das

0 0
0
Indus Valley Civilization {Harappan Civilization} (Brief Note)
The Mesolithic era initiated rock art in prehistory. In 1867 the first rock paintings in India were discovered at Sohagighat, Kaimur Hills, UP. Animals dominate the scenes. However, no snakes are depicted...
T

Tushar K.

0 0
0
Geography - Plate Tectonism and its consequences
Introduction : The movement of the earth's plate relative to each other due to the adiabatic force generated by the thermal energy from earth's interior is called as plate tectonics. The earth's plate...
L

Lourembam Devraj Singh

1 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 Mumbai
Class X Tuition in Chennai
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