Question

Delta Ltd., an American company, is operating in different locations of the world and planning to expand its business in India as well.

Which of the following advantages do you think the MNC can gain by investing in foreign countries?

• A. Reduce their cost of operation
• B. Expand production of their goods and services
• C. Reach out to foreign customers easily
• D. Provide large-scale job opportunities in host countries

Answer 1

Answer: (A), (B), (C)

Reach out to foreign customers easily

MNCs tend to invest in foreign countries to expand their reach. The increase in production in various countries helps in reducing production cost while also gaining access to the resources available in other countries. It helps them increase profits.