Question

Before setting up a production unit in the foreign country, what factor do the mnc's look for? Name 3 factors.

Answer 1

MNCs look for closeness to the market.

Availability of cheap labour.

Liberalized government policies.

These are the three main factors which MNCs look for before investing.

Answer 2

Answer:

The MNC's look at the following factors:-

1. MNC's look up for regions which is close to the market, and where there is a cheap availability of skilled and unskilled labour for production.

2. Where there is assurance of other resources required to set up a company or a factory.

3. The MNC's look at the countries government policies that favour their interests.