Q. 3 E4.2( 14 Votes )

Write a note to explain the effects of the following:

The decision of MNCs to relocate production to Asian countries.

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.


Rate this question :

How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
Related Videos
Germany-A nation in Making37 mins
The Making of Germany and Italy49 mins
Geometrical Meaning of the Zeroes of a Polynomial33 mins
Formulas- Not a Name of a Car48 mins
Working of a Neuron39 mins
Exploring the Indian Political world -II56 mins
Role of a Comma44 mins
Beauty of a Poem58 mins
Champ Quiz | Zero of a Polynomial30 mins
Mathematics in Real World39 mins
Try our Mini CourseMaster Important Topics in 7 DaysLearn from IITians, NITians, Doctors & Academic Experts
Dedicated counsellor for each student
24X7 Doubt Resolution
Daily Report Card
Detailed Performance Evaluation
view all courses