Question

How do multinational companies keep their costs low?

a
They manufacture their products in only one country
b
They assemble their final product in many different countries
c
They build factories far away from raw materials
d
They build factories in countries where the labor is inexpensive

Answer 1

They build factories in countries where the labor force is inexpensive.

Step-by-step explanation:

Multinational companies are huge companies that operate on an international level, have facilities and operations in numerous countries and continents. They are true economic giants, often having bigger profits than the budgets of many of the countries around the world.

These companies are able to produce high-quality products but for lower prices. This increases the competition on the market and the consumers are getting the best products for the lowest possible prices. International companies are able to achieve this by building factories in developing countries where they get the same or even more work done by the labor force for significantly smaller wages.