Multinational companies set up their production offices in those countries where:

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Cost of inputs/ production is low.

Availability of abundant resources.

Availability of cheap labour.

All of the above.

answer is D.

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Detailed Solution

Multinational corporations are companies that own and operate production units in more than one country. Generally, multinational corporations set up their production units in those countries where skill and unskilled labour is available at a low cost, adequate amounts of raw materials are also available at a cheap rate or the lowest possible rate, and the place of production is located very close to markets and promises a large number of buyers. The government provides various facilities, for example, special economic zones that offer world-class electricity facilities, infrastructure, and flexible labour laws. They have assured return on investment and get support from local producers and companies through collaboration with them.

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