Question

What are the condition that determine MNC setting up of production in other countries

Answer 1

MNC set up production where it is close to the market, where skilled and unskilled labour are available easily and where the availability of other factors of production are assured.
2. The products are supplied to the MNC which then sell these products under their own brands name to the customer. These large MNC have tremendous power to determine price quality, delivery and labour condition for these distant producers.

Answer 2

Answer:

The MNC's look at the following factors:-

1. MNC's look up for regions which is close to the market, and where there is a cheap availability of skilled and unskilled labour for production.

2. Where there is assurance of other resources required to set up a company or a factory.

3. The MNC's look at the countries government policies that favour their interests.