Write a note to explain the effects of the following: The decision of MNCs to relocate production to Asian countries. -SST 10th

Write a note to explain the effects of the following: The decision of MNCs to relocate production to Asian countries. -SST 10th
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1 Answer

Answer :

Wages were relatively low in Asian countries. Thus, they became attractive destinations for investment by foreign MNCS competing to capture world markets. The relocation of industry to low-wage countries stimulated world trade and capital flow. Impact of MNC's decision to relocate production in Asian Countries: • It provided for cheap labor to MNC's It stimulated world trade and increased capital inflow in the Asian Countries • Brought about new technology and production methods to the Asian Countries. • Greater choice of goods and services to the people with the greater employment opportunities for Asian countries. • Rapid economic transformation resulting in the growth of economies like India, China.
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