Choose whether the statement is true/false.

The MNCs selected China as a potential location for investment.

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Detailed Solution

The above statement is true.
Multinational corporations (MNCs) are larger companies conducting business in different nations simultaneously. Unemployment in the industrialised world increased in the middle of the 1970s and stayed high until the early 1990s. As a result, MNCs started moving their industrial activities to low-wage Asian nations in the late 1970s. MNCs considered China as a potential investment location. Following the 1949 revolution, China assumed a significant position in the world economy and developed into a favourable environment for foreign MNCs. The country with the most people is China. Consequently, they built up a sizable customer base. In comparison, China has low labour costs. As a result, they attracted numerous foreign MNCs.

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