MNCs invest in foreign countries because of

see full answer

Your Exam Success, Personally Taken Care Of

1:1 expert mentors customize learning to your strength and weaknesses – so you score higher in school , IIT JEE and NEET entrance exams.

An Intiative by Sri Chaitanya

Favourable government policies

Non-favourable government policies

Strict labor laws

Less labor

answer is A.

(Unlock A.I Detailed Solution for FREE)

Best Courses for You

JEE

NEET

Foundation JEE

Foundation NEET

CBSE

Detailed Solution

MNCs invest in foreign countries because of favorable government policies.
The Government of India has created Special Economic Zones (SEZs), which provide unique advantages to facilitate foreign investment. This also helps develop the infrastructure in the country, which is the reason the government encourages foreign investment. SEZs feature world-class facilities like roads, transport, storage, and recreational and educational facilities. They also offer companies to set up their production units in these zones, for which they do not have to pay any taxes for an initial period of 5 years. Flexibility in labor laws is also allowed by the government in favor of MNCs to attract foreign investment to our states.

Watch 3-min video & get full concept clarity