What are the factors that attract MNCs to set up factories in the world countries?

What are the factors that attract MNC to set up factories in other countries?

1 Answer

  • Close proximity to the market.
  • Availability of skilled and unskilled labour at low cost.
  • Assured production.
  • Governments liberalized policies.
  • Developed infrastructure.
  • Safety measures. Please log in or register to add a comment. Related questions. 0 votes.

What are the factors that required to set up MNCs?

Answer

  • Availability of skilled or unskilled labour at low cost .
  • closeness or the markets .
  • Government policies which look after their interest .
  • Safety measures .
  • Development infrastructure .

What factors are taken into consideration by the MNCs to set up offices and factories for production?

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.

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Why do MNC set up their offices and factories in certain areas only explain any five reasons?

Multinational corporation for MNC set up their offices and factories only in certain areas due to the following reasons: … MNCs are also willing to set up in those areas which have favorable government policies. 5. Availability of cheap labour is also considered.

What factors do MNCs consider while choosing locations for their production centers?

THE FIVE FACTORS AFFECTING THE LOCATION OF A INDUSTRY ARE:

  • AVAILABILITY OF RAW MATERIAL.
  • AVAILABILITY OF CHEAP LABOUR.
  • AVAILABILITY OF CAPITAL AND BANK FACILITIES.
  • PROXIMITY TO MARKETS.
  • AVAILABILITY OF ADEQUATE TRANSPORT LIKE:RAILWAYS ,WATERWAYS ,ROADWAYS ETC.

What are the conditions which should be taken care of by MNCs to set up their production units in different countries?

Answer

  • cheap and easy avavility of Labour.
  • low and easy cost of production for profit.
  • easy avavility of raw materials.
  • a well set market in the region where MNCs has placed their industry.

Why the MNCs are interested to set up their manufacturing units in developing countries?

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

Why do MNCs set up offices and factories in certain areas only?

A multinational corporation is set up in those areas where there is easily available raw material in abundance. This will save the cost of procuring raw material and transporting it to their site of manufacturing.

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Why and where did MNCs set up production?

Explanation: MNCs set up their production units in regions where they have access to cheap labour and resources like raw material, land etc. Due to availability of cheap resources, the production cost remains low and this result in maximum profit for the MNCs.