How do MNCs invest their capital in other country
Dear student,
Multinational companies are companies that have branches in more than one country. MNCs set up their factories in SEZ (Special economic zone) region and follow some investment laws, easy tax and labour policy, outsourcing non-essential operations to invest money in other countries. SEZ regions are beneficial to set up industries because it provides land and other related infrastructure such as subsidies, water, and the electricity that attracts MNCS most. Countries with cheap labour and easy tax policies attract investors to invest in that country for setting up MNC because it helps to gain higher returns. So, these are the various ways for which MNCs invest in different countries.
Regards
Multinational companies are companies that have branches in more than one country. MNCs set up their factories in SEZ (Special economic zone) region and follow some investment laws, easy tax and labour policy, outsourcing non-essential operations to invest money in other countries. SEZ regions are beneficial to set up industries because it provides land and other related infrastructure such as subsidies, water, and the electricity that attracts MNCS most. Countries with cheap labour and easy tax policies attract investors to invest in that country for setting up MNC because it helps to gain higher returns. So, these are the various ways for which MNCs invest in different countries.
Regards