Question

Examine any three conditions which should be taken care of by multinational companies to set up their production units.

Answer 1

Three conditions are :
(i) MNCs Set-up production units at such a place where they can produce their goods at a minimum cost.

(ii) The place where markets are closer.
(iii) The place where skilled and unskilled labour is available at low cost.
(iv) Other factors of production are assured.
(v) Government policies are favourable.