The decision of MNCs to relocate production to ____ resulted in increased World trade and capital flows.

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The decision of MNCs to relocate production to Asian countries resulted in increased World trade and capital flows.
In the mid-1970, a new scenario of the international financial system was visible, which made developing countries grow their economy and reduce unemployment. Multinational companies started relocating their production to Asian countries where production can take large scale. Not only this, but production in these developing countries that are newly decolonized will provide cheap labour as compared to the developed countries. This will result in a profit margin for Multinational Companies and reduce unemployment in Asian countries. All this led to increased World trade and capital flows. With this, developing countries were also forced to borrow from Western commercial banks.

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