Question 6 of 46intermediate💡 UnderstandShort Answer3 marks

In what ways will the production of cars by Ford Motors in India lead to interlinking of production?

Correct Answer

The production of cars by Ford Motors in India leads to interlinking of production in several ways. First, Ford Motors set up its plant in collaboration with Mahindra and Mahindra, a major Indian manufacturer, which links Indian companies with foreign MNCs.

Second, the presence of several local manufacturers who supply auto-parts to Ford Motors creates linkages between domestic producers and the global company.

Third, Ford Motors produces cars in India not only for the Indian market but also exports cars to countries like South Africa, Mexico, Brazil and the United States. This connects India's production with markets across the world, integrating India into the global production network.

Exercise: LET'S WORK THESE OUT | Q: 5 | (Page Page 6)
For More Understanding

Explanation

The answer draws directly from the textbook context which mentions Ford's collaboration with Mahindra and Mahindra, local manufacturers supplying auto-parts, and exports to multiple countries. The concept of interlinking of production is explained through these three key mechanisms: collaboration with local companies, sourcing from local suppliers, and connecting domestic production to global markets through exports.

Solution Steps

  1. Step 1: Identify collaboration with Indian company (Mahindra and Mahindra) from the context

  2. Step 2: Note the presence of local manufacturers supplying auto-parts

  3. Step 3: Highlight the export of cars from India to multiple countries as evidence of global interlinking

PreviousNext