Question

Why do multinational corporation (MNC) set up their offices and factories in certain areas only? Explain any five reasons.(All India-2019)

Answer 1

Answer:

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Explanation:

Multinational companies usually set up their factories and offices for production in countries where land, labour and raw materials are available at much cheaper rates. This results in greater profits for the company.

Answer 2

Answer:

Multinational corporation for MNC set up their offices and factories only in certain areas due to the following reasons:

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 in those areas which have favorable government policies.
5. Availability of cheap labour is another factor MNCs must take into consideration.