Choose whether the given statement is true or false.

MNCs are spreading their production across borders due to the low cost of production.

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True

False

answer is A.

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Detailed Solution

The above statement is true. These large corporations manufacture their goods in countries where labour and raw materials are inexpensive. These companies look for cheap inputs to reduce their cost of production and maximise their profits. Some MNCs place orders with Indian footwear and garment producers. It reduces their cost of production. MNCs hire workers on a contractual basis, so they do not have to pay workers for the whole year. Before the emergence of MNCs, most firms hired workers permanently.

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