Single Answer MCQ
Q-00015718
What is a primary reason for MNCs to set up production in other countries?
1
To gain more customers in their home country
2
To ensure global standardization of prices
3
To find cheaper labor and reduce production costs
4
To raise production prices in their own country
Answer and Solution
Answer
C. To find cheaper labor and reduce production costs
Solution:
MNCs often set up production in other countries to find cheaper labor and reduce production costs, allowing them to maximize profits.
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