Question

Why do multinational corporations (MNc) set up their offices and factories in certain areas only? Explain any five reasons.

Answer 1

MNCs are interested to set up their manufacturing units in different areas because:

1. Labour in developing countries are cheap and easily available.

2. There is flexibility in labour laws which made MNC's easier to set up industries here.

3. The markets in developing countries are very good for selling products and making huge profits.

4. There is available support from the government to make way for Special Economic Zones.

5. Local companies and manufacturers also cooperate with the MNC's in the process of manufacturing by supplying the required products.