Under what conditions do MNCs set up production units?
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Answer:
MNs set up production units in proxisity to the market availability of skill and unskilled labour at low cost and availability of other factors
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Answered by
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Step-by-step explanation:
MNC :
MNC STANDS FOR MULTINATIONAL COMPANY.
IT IS A PRODUCTION UNIT THAT OWNS OR CONTROL PRODUCTIONS UNITS IN MORE THAN ONE COUNTRY .
MNC RESULTS IN GLOBALISATION.
MNC SET UP THEIR PRODUCTION UNITS IN THOSE AREAS :
1:where they get cheap labour and other resources in order to reduce costs and maximise profit.
2: where there are favourable government policies
3. Closeness to market of production unit.
4. Availability of skilled and unskilled labour.
MNC EXPANDS THE PRODUCTION BY THIS WAY :
1. FOREIGN DIRECT INVESTMENT
2. TAKING UP OTHER COMPANIES
3. JOIN HANDS WITH OTHER COMPANIES.
4. CONTRACT TO LOCAL COMPANY
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