MNCs manage to keep the cost of production of their goods low? Explain with example.
MNCs set-up their offices and factories in region where cost of skilled and semiskilled labour and other resources in low.
Besides, to keep the cost of production of their goods low, they also set-up their production centre near market, e.g. due to low cost of product (i.e., low labour cost, low raw material prices) MNCs set-up their factories in developing countries like India, China, Vietnam.
Similarly, the site of assembly are located in Mexico, East Europe due to their proximity to the market of USA and Western Europe, respectively.