Read the passage and answer the questions. Ford Motors, an American company, is one of the world’s largest automobile manufacturers with production spread over 26 countries of the world. Ford Motors came to India in 1995 and spent Rs 1,700 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 2004, Ford Motors was selling Rs 27,000 cars in the Indian markets, while, 24,000 cars were exported from India to South Africa, Mexico and Brazil. The company wants to develop Ford India as a component supplying base for its other plants across the globe. In what ways is a MNC different from other companies?

Question

Read the passage and answer the questions. Ford Motors, an American company, is one of the world&rsquo;s largest automobile manufacturers with production spread over 26 countries of the world. Ford Motors came to India in 1995 and spent Rs 1,700 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 2004, Ford Motors was selling Rs 27,000 cars in the Indian markets, while, 24,000 cars were exported from India to South Africa, Mexico and Brazil. The company wants to develop Ford India as a component supplying base for its other plants across the globe. In what ways is a MNC different from other companies?

Philoid · Accepted Answer

Differences between a MNC and a normal company

MNC	Normal Company
A company which has its business operations in many countries and has huge capital base and technological know-how at its disposal.	They may not have huge financial resources, and is generally confined to narrow market space.
Production process is scattered across more than one country.	Production process is confined to domestic country.
Investments are made in several countries.	No investment in countries, other than home.