MNCs shifted their production operations to

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Western nations

Low-wage countries

Developed countries

None of the above

answer is B.

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Detailed Solution

MNCs shifted their production operations to low-wage countries.
MNC stands for Multinational Companies. In the 1950s and 1960s, MNCs were confined to western nations. They were highly affected by the labour shortage and subsequent higher wages in the western nations. This hindered the capital flows of the MNCs. So, to enhance their productivity and make it profitable, they shifted their production operations to developing nations by the 1970s. In countries like China, where there was a huge population and low-wage scenario, MNCs were attracted to establish themselves in this region. The low-wage countries were profitable as they stimulated world trade and capital flows.

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