Question

Write a note to explain the decision of MNCs to relocate production to Asian countries.

Answer 1

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:  

• It provided for cheap labor to MNC's It stimulated world trade and increased capital inflow in the Asian Countries  

• Brought about new technology and production methods to the Asian Countries.  

• Greater choice of goods and services to the people with the greater employment opportunities for Asian countries.  

• Rapid economic transformation resulting in the growth of economies like India, China.

Answer 2

Relocation of MNCs to Asian countries provide some benefits these are as follows :
1. Due to cheap labour and and abounded resources.
2. Better infrastructural development.
3. Skilled Labour.
4. labour understand the technical aspect of the production.