Examine any three conditions which should be taken care of by multinational companies to set up their production units. (3 × 1 = 3)
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Multinational companies' production units
Explanation:
Multinational companies, should make sure certain conditions are met, before they set up their production units. They are as follows:
- Availability of skilled and unskilled labour. (Check demography of the region for low-cost labour).
- Availabilty of other factors of production (Eg. raw materials, power, water)
- Favourable government policies. (Ensure no violations)
- Closer to the market for finished goods (proximity to transportation like railway, ports, etc.)
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