Question

Give some factors on the bases of which MNCs set up production units in the

developing countries?​

Answer 1

Step-by-step explanation:

MNCs set up production on the basis of following factors:

1. Closeness of the place to the markets.

2. Availability of skilled and unskilled labour at low costs.

3. Availability of other factors of production i.e., raw material, energy etc.

4. Government’s favourable policies.

Answer 2

The ways are: (i)MNCs set up production where it is close to the markets; where there is skilled and unskilled labour available at low costs; and where the availability of other factors of production is assured. (ii)In addition, MNCs might look for government policies that look after their interests.

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