Read the passage on the left 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. 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.
(a) cost of labour and other resources in India
(b) the presence of several local manufacturers who supply auto parts to Ford Motors
(c) closeness to a large number of buyers in India and China
(a) Due to the huge population in India, unemployment and under-employment are very high. Sufficient skilled and unskilled laborers are available here at very low wages. Apart from this, the cost of other resources is also less in India.
(b) A number of small scale local industrial units in India supply components to Ford Motors as manufacturers who have sufficient ability to determine the price, quality and labor conditions.
(i) Multinational companies establish their industrial units/offices in more than one country, whereas local companies have industrial units/offices established in a single country.
(ii) Capital investment of multinational companies is high as compared to local companies.
(iii) The production of multinational companies is demanded and supplied on a large scale, while the units of other companies have small investment, less labor, less raw material, often from local sources and the sale of products is limited to a few countries or supplies of multinational corporations.