Question

What are the advantages to foreign companies in setting up production and in India

Answer 1

The following are the advantages to foreign companies in setting up production and in India :

1. They can cut cost by providing low working conditions including low safety measures

2. They will now have cheap labour .

3. They will have to spend least on housing facilities .

4. As the workers can be replaced, they needn't worry about the shortage of labour.

Answer 2

Answer :

The advantages to the foreign companies in setting up production in India are :-

1. Foreign companies get cheap labour. Wages that the companies pay to the workers in the USA are for higher than what they paid to the workers in India.

2. Additional expenses such as for housing facilities for workers are also cheaper.

3. Lower working conditions, including lower safety measures are used as ways of cutting costs.

Thus , companies can save costs and earn huge profits.