Mr. John is an American citizen who owns a big manufacturing company. Now, he wants to set up his business in India. Which of the following factor(s) should Mr. John consider for his new venture?

Availability of resources

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Technology to use for production

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Availability of labour at low cost

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Government policies

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Solution

The correct option is D Government policies
While setting up a business abroad, MNCs look for the availability of resources first. Moreover, the supply of cheap labour is also necessary for MNCs to keep the production cost less. Beyond resources, supportive government policies are essential to set up a new business in a country.

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