Which of the following factors is considered by the MNCs before setting up production units?

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Closeness to the markets

Availability of factors of production at a low cost

Availability of labour

All of the above

answer is D.

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Detailed Solution

MNCs are organisations with the primary objective of earning profits, and thus, they have to consider a few factors before setting up an office or production unit in another country. Generally, MNCs set up offices or factories close to the market, where labour (skilled and unskilled) is readily available at cheaper costs. Also, the demand for a company's product is analysed before it is launched. Additionally, the government's policies are also one of the factors that the MNCs consider before expanding the business. Thus, all the given options in the question are correct.

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