MNC's decision to set up production units of certain commodities in other countries is determined by the following conditions.
(i) Proximity to markets and availability of buyers.
(ii) Availability of cheap labour both skilled and unskilled.
(iii) Availability of raw materials at lowest possible rates.
(iv) Support from the government like providing SEZ's that is special economic zones.
(v) Assured profits.
(vi) Support from Local companies and manufacturers.
