Question

Why do MNCs hire various services from other countries?

• A. They do not have skilled workers in their home country.
• B. They lack technical skills.
• C. They need to keep the production cost low and make more profit.
• D. They usually do not serve their home countries.

Answer 1

The correct option is C They need to keep the production cost low and make more profit.

The primary motive of a company is to make profits. Thus, it tries to keep the production cost at the lowest level. Similarly, MNCs also hire services from other countries to keep their production cost low and make maximum profit.