Q. 54.2( 4 Votes )
What are th
The advantages to foreign companies in setting up production in India are:
● The foreign companies have access to cheap labor in India.
● The wages that they have to pay to the labors in the US is very high as compared to the ones that they have to pay in India.
● Moreover, for a lower wage rate, they're able to extract more work from the laborers.
● The companies are also able to save a larger cost which would have been spent on the house and facilities of workers. The same is now covered at a much less cost.
● The cost is further reduced by providing lower working conditions and lower safety measures.
● Thus the foreign companies are always eager to set up production in India.
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