While spreading their production, MNCs take into consideration following facts
(i) Low labour cost and low overall cost of
production for e.g. China and India provides the advantages of being cheap manufacturing location.
(ii) Closeness to Market e.g. MNCs set-up their factories in Maxico and Eastern Europe due to their closeness to the markets in US and Europe.
(iii) Skilled manpower e.g. MNCs set-up their office, factories and customer service centers in
India as it has highly skilled engineers and educated English speaking youth.