Single Answer MCQ
Q-00045500
Why might an MNC choose to set up production near a market?
1
To access skilled labor
2
To avoid tariffs
3
To reduce shipping costs
4
To increase investment
Answer and Solution
Answer
C. To reduce shipping costs
Solution:
Setting up production near a market helps MNCs reduce shipping costs, which is a significant expense. While access to skilled labor (option 1) is also important, the primary reason for proximity is cost-effective logistics.
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