Write a note to explain the effects of the following:
The decision of MNCs to relocate production to Asian countries

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Solution

The decision of MNCs to relocate production to Asian countries led to a stimulation of world trade and capital flows. This relocation was on account of low-cost structure and lower wages in Asian countries. It also benefitted the Asian nations because employment increased, and this resulted in quick economic transformation as well.

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Similar questions

Write a note to explain the effects of the following:

(a) The British government’s decision to abolish the Corn Laws.

(b) The coming of rinderpest to Africa.

(d) The Great Depression on the Indian economy.

(e) The decision of MNCs to relocate production to Asian countries.

From which decade did the MNCs begin to shift productions operations to low-wage Asian countries?

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