MNCs set up production where it is close to the markets, where there is skilled and unskilled labour available at low cost, and where availability of other factors of production is assured. what are these other factors mean here??
it cannot be technology and capital since MNCs bring that with them.. labour they already have talked about.. that leaves land... then why are they saying factorS??
Dear Student,
MNC's decisions to expand is determined by the following factors which includes availability of cheap labour , proximity to market , other factors as asked in your query have been mentioned below:
a. Availability of cheap labour both skilled and unskilled.
b. Proximity to market.
c. Availability of resources that is raw materials at low price.
d. This helps MNCs to reduce their cost of production and maximise profits.
e. Government policies that suit their interests, like government may provide certain concessions to them
f. Policies that allows them to collaborate with local companies
Regards
MNC's decisions to expand is determined by the following factors which includes availability of cheap labour , proximity to market , other factors as asked in your query have been mentioned below:
a. Availability of cheap labour both skilled and unskilled.
b. Proximity to market.
c. Availability of resources that is raw materials at low price.
d. This helps MNCs to reduce their cost of production and maximise profits.
e. Government policies that suit their interests, like government may provide certain concessions to them
f. Policies that allows them to collaborate with local companies
Regards