Question

Nestlé is a Swiss food and beverage company. It entered the Indian market in 1961 and is currently one of the leading multinational companies in India. It has more than 100 factories in more than 80 countries.

How can Nestlé impact the countries in which it operates?

• A. Nestlé will increase employment opportunities and thereby improve the standard of living.
• B. Nestlé will help people in moving from one country to another for the purpose of tourism.
• C. Nestlé will increase the production of goods and services in the country, thereby increasing the gross domestic product.
• D. Nestlé will promote specialisation.

Answer 1

Answer: (A), (C)

Nestlé will increase the production of goods and services in the country, thereby increasing the gross domestic product.

Due to globalization, companies can operate in more than one country. Such companies are called multinational companies (MNCs). Nestlé is one such MNC. Sometimes, these MNCs set up their manufacturing units in other countries. This increases the production or gross domestic product of the country that it enters. For their operations, they hire people, giving them employment and raising their standard of living.