GK
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Where do MNCs choose to set up production?
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Cheap goods
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Cheap labour resources
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Economic sustainability
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None of these
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Explanation:
Detailed explanation-1: -(i)MNCs set up production where it is close to the markets; where there is skilled and unskilled labour available at low costs; and where the availability of other factors of production is assured.
Detailed explanation-2: -MNCs setup their offices and factories in those regions where they get cheap labour and other resources so that they can reduce their cost of production and maximize the profit.
Detailed explanation-3: -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.
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