How do MNCs rely on GVCs?
A) In relation to efficient operations and lower costs to consumers
B) In relation to higher costs to consumers
C) In relation to MNC power to innovate
D) In relation to MNC power over SMEs
E) To bargain with states and governments

Question

Quizplus · Accepted Answer

MNCs rely on GVCs to achieve efficient operations and lower costs to consumers. GVCs allow MNCs to fragment their production processes and locate different stages of production in different countries, taking advantage of lower costs of labor, materials, and other inputs. This fragmentation allows MNCs to produce goods and services more efficiently and at a lower cost, which can be passed on to consumers in the form of lower prices.

How Do MNCs Rely on GVCs