Edzy
Single Answer MCQ
Q-00045557

Why might MNCs prefer to set up operations in India?

1

High tariffs on foreign goods

2

Cost-effective production processes

3

Strict government policies

4

Exclusively Indian raw materials

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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

B. Cost-effective production processes

Solution:

MNCs prefer to set up operations in India mainly due to cost-effective production processes, including lower labor costs.

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