Why the MNCs decide to relocate production to Asian countries?

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Cheap labor.

The influx of capital.

Economic transmutation.

All of the above.

answer is D.

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Detailed Solution

Cheap labour, the influx of capital and economic transmutation made the MNCs decide to relocate production to Asian countries.
Unemployment in the industrial nations increased beginning in the middle of the 1970s and kept rising until the early 1990s. As a result, MNCs began moving their industrial activities to low-wage Asian countries in the late 1970s. The choice of MNCs to move production to Asian nations significantly impacted the world economy. The following factors, like cheap labour that MNCs received from Asian countries, stimulating trade that gave global trade and commerce a boost, the influx of capital inflow to Asian nations, and a rapid economic transformation, have led to expanding countries with economies like China and India.

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