Question

Where do MNCs set up their production unit? Discuss with reason.

Answer 1

Answer:

MNCs set up their production units in places -

1. where availability of labour is cheap and in abundant.
2. where the resources are available at low cost.
3. where raw material is available nearby.
4. where transportation cost is low.

Due to availability of cheap resources, the production cost remains low and this result in maximum profit for the MNCs.

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