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.

Nearly all the MNC companies are ____, Japanese or European.

Question

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.

Nearly all the MNC companies are ____, Japanese or European.

Accepted Answer

Nearly all multinational companies, or MNCs, are American, Japanese, or European.
Multinational companies such as Pepsi, coca-cola, Nike, Honda, Nokia, etc., belong to developed countries. This is because these developed countries have a high level of capital required to start a multinational company. The business climate in developed countries is also beneficial for the growth of companies. This enables many small companies to, over time, turn into multinational companies. These countries mostly expand their market in developing and underdeveloped markets. It is beneficial for multinational companies as well as the government.

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