Question

what were the effect of decision of MNCs to relocate production to Asian countries

Answer 1

The decision of MNCs to relocate production to Asian countries led to a stimulation of world trade and capital flows. This relocation was on account of low-cost structure and lower wages in Asian countries. It also benefitted the Asian nations because employment increased, and this resulted in quick economic transformation as well.

Answer 2

Answer:

Impact of MNC's decision to relocate production in Asian Countries:

It provided for cheap labour to MNC's.

It stimulated world trade.

Increased capital inflow in the Asian Countries.

Brought about new technology and production methods to the Asian Countries.

Greater choice of goods and services to the people.

Greater employment opportunities for Asian countries.

Rapid economic transformation resulting in the growth of economies like India, China.