question_answer

Examine any three conditions which   should by taken care of by multinational companies to set up their production units.

Answer:

Multinational corporations (MNC) has emerged in many countries and their role has     spread from Manufacturing to services of consultancy An MNC is a company owns and controls productions or provide consultancy in more than one nation They normally study three conditions before setting up their production units that there are :

(i) MNCs set up offices and factories for production in region where they can get cheap labour.

(ii) MNCs require good quality raw materials for their factories.

(iii) They look for good transport mode to take their product to consumers or to other countries.

(iv) This is done so that the cost of production becomes low and MNC can earn good profit.