Choose the given statement that is true/false:

The decision of MNCs to relocate productions to Asian countries led to an increase in world trade.

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True

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Detailed Solution

The above statement is true.
The decision by multinationals to transfer production to Asian countries has led to a resurgence of world trade and capital flows. The reason for this shift was the low-cost structure and low wages in Asian countries. Increasing employment has also benefited Asian countries, which has led to rapid economic change. Foreign MNCs competing to conquer the world market have opted to shift production to Asian countries due to low wages in Asian countries and stimulating world trade. The implications of the decision by multinationals to transfer production to Asian countries are as follows:
This shift has benefited multinationals by giving them access to cheap labour. Asian countries have brought new technologies and production methods. People in Asian countries have been given a wider choice of products and services, creating more employment opportunities.

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