question_answer

  How do Multinational Companies manage to keep the cost of production of their goods low? Explain with examples.  

Answer:

                  MNCs set up offices and factories for production in regions they can get skilled and unskilled labourers at low costs. They set up production where it is close to the markets. They set up production where    the availability of other factors of production is assured. MNCs also look for favourable government policies. At times, they set up production jointly with some of the local companies of these countries.