Question
Under what conditions do MNCs set up production units?

Answer

MNCs set up production units on the basis of:
  1. Proximity to the markets;
  2. Availability of skilled and unskilled labour at low cost;
  3. Availability of other factors of production is assured; and
  4. Government policies that look after their interests.
  5. Developed infrastructure.
  6. Safety measures.

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