Geographic dispersion is one of the consequences of “going global” by most MNCs. There are both...

Geographic dispersion is one of the consequences of “going global” by most MNCs. There are both costs and benefits associated with this dispersion. List and explain at least two costs and two benefits associated with geographic dispersion of a MNC.

Expert Solution

Answer :-

Two advantages related with geographic dispersion can be recorded as :-

• It prompts specialization and the MNC can get the advantages of the standard of near advantage.

• Provides access to bigger markets brings about more appeal for their products and help them appreciate the advantages from economies of scale.

The costs of geographic distribution can be recorded as:-

• These MNCs make an exclusive requirement for the goods in the market. The local and little producers trying to stay aware of the opposition likewise produce exclusive expectation products. This may bring about an expansion in the expense of their creation. Accordingly they endure misfortune.

Consequently the elevated requirement that the MNCs cause may drive out the current little local producers.

• The MNCs utilize the local assets for their creation. This can likewise be very hazardous if not controlled. Over exploitation of assets could prompt shocking impacts.

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Rahul Sunny answered 1 year ago

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