Edzy
Single Answer MCQ
Q-00015722

Why might MNCs prefer to set up production in countries close to their target markets?

1

To increase import tariffs

2

To save costs on logistics and delivery

3

To avoid investing in local economies

4

To reduce competition from other brands

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

B. To save costs on logistics and delivery

Solution:

MNCs prefer to set up production near their target markets to save costs on logistics, making distribution and delivery more efficient.

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