Ford Motors, an American company, came to India in 1995 and spent Rs. 1700 crores to set up a large plant near Chennai. By the year 2014, Ford Motors was selling 77000 cars in the Indian markets while around 77000 cars were exported to South Africa.

Identify from the following passage, whether the company is regarded as an MNC or not.

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Ford Motors is not an MNC

Ford Motors is an MNC

Ford Motors is an International Company

None of the above

answer is B.

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Detailed Solution

Ford Motors is an MNC since it owns and controls production units and expands across many countries. It established a manufacturing plant in India and sold cars in domestic and international markets, including South Africa. Above all, the headquarters of Ford Motors is situated in the USA, from where all decisions regarding manufacturing and sales are made, further expanding the idea of interlinking between countries. This interlinking of nations is called globalisation, and MNCs have played a massive role in making this happen. Thus, Ford Motors qualifies as a multinational corporation (MNC).

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