What in developed countries, place their order for production with large producers in developing countries for various items?

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Small scale industries

MNCs

Cottage industries

None of the above

answer is B.

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Detailed Solution

MNCs in developed countries place their order for production with large producers in developing countries for various items.
Large MNCs try to get a grip on the customers in developing countries because they require a wider choice of products and their choices are flexible, which creates a demand for various products. Large producers sell their resources in bulk and quite cheaply, which is required by the MNCs to minimise their costs and maximise their profits. They also set up their offices and factories in developing countries because of the availability of cheap resources and labourers. They search for a well-developed infrastructure such as roads and railways, closeness to markets, and a safe environment, which are available in developing countries, along with other factors.

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