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Q.

From the late 1970s, MNCs began to shift production operations to low-wage ____ countries.


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Detailed Solution

MNCs started shifting their production operations to low-wage Asian countries in the late 1970s.
Since its revolution in 1949, China was cut off from the post-war global economy. However, new Chinese economic policies and the fall of the Soviet Union and Soviet-style communism in Eastern Europe allowed many nations to rejoin the global economy. Wages were generally low in places like China. As a result, they attracted the attention of international MNCs vying for global market share. Industry migration to low-wage nations boosted international trade and capital flows.
 
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