Question

mention any two factors that are required to set up mncs

Answer 1

Cheap laboir,source of raw materials , closeness to the market and governmental policies

Answer 2

Answer:

1. A multinational corporation is set up in those areas where there is easily available raw material in abundance. This will save the cost of procuring raw material and transporting it to their site of manufacturing.
2. Availability of cheap labour is another factor MNCs must take into consideration. Without cheap labour the cost of production will increase and the selling price will increase too which will not be favourable to the MNC in a competitive market.