Q.

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.


In what way will the production of cars by Ford Motors in India lead to the interlinking of production?


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a

By joint venture

b

By local companies

c

By placing orders with small companies.

d

All the above 

answer is D.

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Detailed Solution

The production of cars by Ford Motors in India leads to interlinkage of production by the joint venture, local companies, and placing orders with local companies.
Ford Motors entered the Indian market in 1995 and set up a plant in Chennai. They have linked the production in India by setting up a joint venture with Mahindra and Mahindra, a major manufacturer of trucks. Because of its low cost of production, Ford has not only captured the Indian market for automobiles but also set up production units. Ford cars are being exported to other countries from India.
 
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