Question

Why do MNCs set up their offices and factories in Asian countries? Explain ​

Answer 1

The cost of production is reduced considerably due to cheap labour and the MNCs earn great profits. So their factories are set up in those regions where they get cheap labour and other resources.

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Answer 2

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MNCs set up their offices and factories in Asian countries because of profit level. As we know that, MNCs set up their factories and offices in those regions where cheap labours and all other required resources are available at low cost so that this can reduce their cost of production and therefore they choose Asian countries.