Read the following extract and answer the following questions:

Ford Motors, an American company, is one of the world’s largest automobile manufacturers, with production spread over 26 countries worldwide. Ford Motors came to India in 1995 and spent Rs. 1700 crore to set up a large plant near Chennai. This was done in collaboration with Mahindra and Mahindra, a major Indian manufacturer of jeeps and trucks. By the year 2017, Ford Motors was selling 88,000 cars in the Indian markets, while another 1,81,000 cars were exported from India to South Africa, Mexico, Brazil, and the United States of America. The company wants to develop Ford India as a component supplying base for its other plants across the globe.

Why do you think the company wants to develop India as the base for its global operation?

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Low cost of labor and resources in India

Presence of local manufacturers

Closeness to a large number of buyers

All of the above

answer is D.

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Detailed Solution

The company wants to develop India as the base for its global operations for the following reasons:
The cost of labour and resources in India is very low. India provides skilled and unskilled labour at a very low cost. Many engineers and other labourers are required for the automobile industry's production. The government has also provided other resources at a low cost through SEZ. There are a lot of local manufacturers who supply small parts to car manufacturers. India and China are two developing as well as highly populated countries. They provide a huge market for the automobile industry.

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