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Q.

Ford Motor Company wants to develop India as a component supplying base for its other plants across the globe because:


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a

Accessibility to local suppliers

b

Low cost of labor

c

Good customer base

d

All of the above 

answer is D.

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Detailed Solution

Ford Motor Company wants to develop India as a component supplying base for its other global plants because of accessibility to local suppliers, low cost of labour, and good customer base. Therefore, a multinational like Ford will set up its manufacturing base in India because:
  • It has a large number of buyers of the manufactured cars
  • It provides cheap labour
  • Low cost raw materials are available
  • The presence of a large number of manufacturers for part supply.

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