SSC
INDIAN ECONOMY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Where do MNCs choose to set up production?
|
|
Cheap goods
|
|
|
Cheap labour resources
|
|
|
Economic sustainability
|
|
|
None of these
|
Explanation:
Detailed explanation-1: –The regions where the government’s initiatives are beneficial, is a spot the MNCs usually choose to establish in.
Detailed explanation-2: -Answer: The various ways in which MNCs set up or control production in other countries are (a) Buy up a local production company. (b) Place orders for production with small producers, i.e., contract manufacturing. (c) By setting up a partnership (joint venture) with a local company.
Detailed explanation-3: -Answer: MNCs set up offices and factories for production in regions where they can get cheap labour and other resources. Example, Countries like China, Bangladesh and India. They also provide with the advantage of cheap manufacturing locations.
There is 1 question to complete.