Question

explain the 3 conditions that determine MNC'S setting up production in other countries

Answer 1

(a) Buy up a local production company.
(b) Place orders for production with small producers, i.e., contract manufacturing.
(c) By setting up a partnership (joint venture) with a local company.
(d) Setting up their wholly owned subsidiary in the other country.
(e) By licensing or franchising their brand to a local company.

Answer 2

1) Availablity Cheap skilled and unskilled labour.

2) The laws of a country relating to setting up of production and proximity of the market are also crucial factors in determining the set up of production.

3) Closeness to markets.