Question

Why do foreign companies like Union Carbide set up factories in India?

• A. Availability of cheap labour
• B. Laws on safety and environment standards are lax
• C. It is the only way to expand their business
• D. All foreign companies care deeply for the Indian population

Answer 1

Answer: (A), (B)

Laws on safety and environment standards are lax

The main reason why foreign companies set up factories in India is the availability of cheap labour. Cost cutting can also be done by other means. Lower working conditions include lower safety measures which in turn saves such companies a considerable amount of expense.