GK
INDIAN ECONOMY
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Availability of cheap skilled and unskilled labour
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Proximity to markets
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Presence of a large number of local competitors
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Favourable government policies
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Detailed explanation-1: -"MNCs keep in mind certain factors before setting up production". Such factors are: Availability of cheap skilled and unskilled labour, Proximity to markets, Favourable government policies etc. The option which is incorrect among the given choices is the Presence of a large number of local competitors.
Detailed explanation-2: -To set up an MNC main criterion is availability of cheap labour resources.
Detailed explanation-3: -Availability of cheap labour and other resources: Partnership with local companies: Favourable Government Policy:
Detailed explanation-4: -By using the local companies for supplies. By setting up partnerships with local companies. By closely competing with the local companies or buying them up.