Q. 3 E4.3( 15 Votes )
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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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