Mention if the given statement is true or false:

MNCs look only for the availability of cheap labour while investing.

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True

False

answer is B.

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Detailed Solution

The given statement is false.
While establishing a business in a particular country, multinational companies look for certain factors that help them in deciding whether to invest in a specific country or not. The availability of cheap and skilled labour is one such factor. However, it is not the only factor based on which these companies invest. Other vital aspects that multinational corporations consider when deciding whether or not to support include the availability of natural resources, favourable government policies, better transportation facilities, good infrastructure, proximity to markets, and so on.
Thus, the correct statement is: "MNCs look for several factors apart from cheap labour while investing in other countries."

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