Describe any five ways by which MNCs set up their production units in other countries.
MNCs, setup their production units on the basis of following factors:
- MNCs set up production where it is close to the markets.
- Where there is skilled and unskilled labour available at low costs.
- Where the availability of other factors such as availability of raw material connectivity of transportation.
- Safety power supply etc. play an important role in attraction of industries in a particular areas.
- Government policy MNCs might look for government policies that look after their interests. After assuring above conditions, MNCs setup factories and office for production.