Every MNC tries to drive down costs by getting its goods and services to the market in the…

Every MNC tries to drive down costs by getting its goods and services to the market in the mostefficient way. Good examples include auto firms such as Ford Motor and Volkswagen, which haveworldwide operations. In recent years Ford has begun expanding into Europe and VW has begunsetting up operations in Latin America. By building cars closer to the market, these companieshope to reduce their costs and be more responsive to local needs. At the same time this strategyrequires a great deal of organization and coordination.Visit the websites of both firms and examine the scope of their operations. The web addressesare www.ford.com and www.vw.com. Then, based on your findings, examine what type oforganizational arrangements do you see the two firms using in coordinating their worldwideoperations? Which of the two companies has the more modern arrangement? Do you think thisincreases that firm’s efficiency, or does it hamper the company’s efforts to contain costs and bemore competitive? Why?