Question

why do MNC set up their offices and factories in those region where they get cheap labour and other resourses

Answer 1

mnc means multinational company .mnc are set up because they like the pursuit of of profit .by set up their factories in the region which is self sufficent in resources and cheap labour cost them less. if they set up their factories far off from the place which is rich in resources and cheap labour slow down the slow down the speed of production as the raw material take time to reach the factory and traveling cost them too.

Answer 2

Answer:

Multinational Corporations (MNCs) set up their offices and factories only in certain areas with certain available factors to save the cost of production and to gain more consumers and achieve higher profit. MNCs set up offices and factories after due consideration of the following factors:

1. A multinational corporation is set up in those areas where there is easily available raw material in abundance. This will save the cost of procuring raw material and transporting it to their site of manufacturing.
2. It is set up in an area which has good transportation facilities from the manufacturing area to the market area.
3. Another factor considered in setting up of an MNC is the easy accessibility to the market.
4. MNCs are also willing to set up offices and factories in those areas which have favorable government policies.
5. Availability of cheap labour is another factor MNCs must take into consideration. Without cheap labour the cost of production will increase and the selling price will increase too which will not be favourable to the MNC in a competitive market.