alleryMNCs often spread production across countries because
Athey want to lose money
Bthey prefer expensive labour
Cto access cheap labour, materials, regulations and markets
Dthey have to follow only home-country laws
Answer & Solution
Correct answer: C. to access cheap labour, materials, regulations and markets
1. MNCs locate stages of production in countries offering cost advantages.
2. Cheap labour, supply of raw materials, lighter regulation and access to markets all matter.
3. Hence production networks span multiple countries.
_Source: syllabus Understanding Economic Development, Ch 4 "Globalisation and the Indian Economy"_
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