Edzy
Single Answer MCQ
Q-00015733

Why do multinational corporations (MNCs) invest in countries like India?

1

Higher production costs

2

Limited market access

3

Cheaper labor and large markets

4

Political instability

Reviewed & Verified by Edzy Expert

Sandeep Chaturvedi

Sandeep Chaturvedi

CBSE Social Science & Humanities Reviewer

Social science and humanities educator with 14+ years of experience reviewing CBSE SST, economics, commerce, arts, and vocational content.

M.A. HistoryM.A. Political ScienceB.Ed.

Answer and Solution

Answer

C. Cheaper labor and large markets

Solution:

MNCs invest in countries like India to take advantage of cheaper labor and a large consumer market, which reduces their production costs and increases profit potential compared to developed countries.

Watch Video Solution