Why did MNCs begin to shift their production centres to Asian countries ? What were its effects ?
OR
Why did technological changes occur slowly in Britain in early nineteenth century ? Explain any three reasons.
OR
Explain any three reasons for the increasing concern for the London poor during the nineteenth century.
CBSE Class X Social Science SA ( 3 marks)
Answers
(ii) Availability of raw materials and a large market.
(iii) Effects : It stimulated world trade and flow of capital. Countries like India, China and Brazil underwent rapid economic transformation. It generated employment opportunities and introduced competition in the domestic markets.
OR
(i) New technology was expensive and merchants and industrialists were cautious about using it.
(ii) The machines often broke down and repair was costly.
(iii) They were not much effective as compared to cheap labour.
OR
(i) The poor and filthy living conditions of one room houses which posed a serious threat to public health.
(ii) There was danger of fire hazards.
(iii) There was also a fear of social disorder or rebellion by the workers especially after the Russian Revolution in 1917.
Answer:
(i) MNCs shifted their production units to Asian countries because of cheap labor and low wages. (ii) Availability of raw materials and a large market. (iii) Effects: It stimulated world trade and flow of capital. Countries like India, China, and Brazil underwent rapid economic transformation.It generated employment opportunities and introduced competition in the domestic markets.
Explanation:
Wages were relatively low in Asian countries. Thus, they became attractive destinations for investment by foreign MNCs competing to capture world markets. The relocation of industry to low-wage countries stimulated world trade and capital flow.
Impact of MNC’s decision to relocate production in Asian Countries:
1. It provided for cheap labour to MNC’s
2. It stimulated world trade and increased capital inflow in the Asian Countries
3. Brought about new technology and production methods to the Asian Countries.
4. Greater choice of goods and services to the people with greater employment opportunities for Asian countries.
5. Rapid economic transformation resulting in the growth of economies like India, China.