Choose the given statement as true/false:

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

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True

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Detailed Solution

After 1970, MNCs shifted large-scale production to low-wage Asian nations. MNCs' choice to move production to Asian nations boosted international commerce and financial flows. This move was made because of the low cost of living and lower wages in Asian nations. Because employment rose due to it, Asian countries benefited from the rapid economic change. Foreign MNCs vying for global market share found China a desirable location for investments due to the extremely low salaries. China's economy has a low-cost structure along with low salaries. Thus, China became a major producer of commodities, including toys, mobile phones, and televisions.

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