Choose that given statement is true/false

In 1970, Multinational Companies stopped production operations in the low wage Asian countries .

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True

False

answer is B.

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Detailed Solution

The above statement is incorrect.
This decision of MNCs boosted the growth of Asian countries as they received capital investment. In terms of human capital, these Asian countries were rich. A large section of the population was unemployed. Employees were working as indentured labour. These MNCs came as a ray of hope to a large section of the working population. These MNCs benefited from getting the same work done at lower wages than developed countries at a higher cost.
The correct statement would be Multinational Companies began to shift their production operations to low-wage Asian countries after 1970.

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