Question

In general, where do MNC's prefer to set up their production units?

• A. Where tax rate is high
• B. Where labour is available at low costs
• C. Where other MNC's exist
• D. Countries who are member of WTO

Answer 1

The correct option is B Where labour is available at low costs

In general, MNCs set up production where it is close to the markets where there is skilled and unskilled labour available at low costs and where the availability of other factors of production is assured.