[[1]] set up production where it is close to the market.

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Detailed Solution

MNCs set up production where it is close to the market.
Multinational corporations are big corporations that produce their goods in countries where skilled and unskilled labour can be readily available at low prices. MNCs consider closeness to the market before setting up their offices and production units in a country, as the closer the market is, the lower the transportation costs and the higher the profits of the MNC.
For example, the Indian government created Special Economic Zones close to the market, which provide cheap electricity and power facilities to attract such MNCs. Another factor that MNCs consider is whether government policies related to production and trade are favourable.

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