Single Answer MCQ
Q-00015694
Why do MNCs prefer to establish factories in emerging markets?
1
To avoid technological advancements
2
To utilize lower labor costs and new markets
3
To export products back to their home country
4
To maintain control over local economies
Answer and Solution
Answer
B. To utilize lower labor costs and new markets
Solution:
MNCs prefer emerging markets for lower labor costs and the opportunity to tap into new consumer markets which can lead to increased profits.
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