Multinational Companies (MNCs) attempt to maximize their profits:

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By purchasing finished products from exporters offering them products at a lower price.

By purchasing finished products from importers offering them products at a lower price.

Both 1 and 2

None of these

answer is A.

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Detailed Solution

Multinational Companies (MNCs) attempt to maximise their profits by purchasing finished products from exporters, offering them products at a lower price.
MNCs also look out for countries where labour and resources for production processes are available at a meagre cost to set up production units in such countries and maximise their profits. India is a good destination for hiring labour at cheap costs. For example, a renowned MNC in the USA sets up its production factory in China due to the availability of required resources and skilled labour at lower costs. The finished goods are shipped to countries in Europe and North America. The MNC has set up call centres in India as skilled labour is available for customer care services at cheaper costs.

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