Why do MNCs set up their offices and factories in those regions where they get cheap labour and other resources?

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Solution

The cost of production is reduced considerably due to cheap labour and the MNCs earn great profits. So their factories are set up in those regions where they get cheap labour and other resources.

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Similar questions

	List I		List II
i	MNCs buy at cheap rates from small producers	a	Automobiles
ii	Quotas and taxes on imports are used to regulate trade	b	Garments, footwear, sports items
iii	Indian companies who have invested abroad	c	Call centres
iv	IT has helped in spreading of production of services	d	Tata Motors, Infosys, Ranbaxy
v	Several MNCs have invested in setting up factories in India for production	e	Trade barriers

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