SSC
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -In general, 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: -Which of the following statements is not correct about MNCs? a)MNCs set up production jointly with local companiesb)MNCs can provide money for additional investmentsc)MNCs do not bring with them the latest technology for productiond)MNCs set up factories for productionCorrect answer is option ‘C’.
Detailed explanation-3: -The conditions which determine MNC’s setting up production process in other countries are: (i) Availability of skilled and unskilled labour at low costs. (ii) Closeness to the markets. (iii) Government policies which look after their interests.