NCERT · Class 10 · Social Science · Economics: Globalisation and the Indian EconomyWhat is the main reason for MNCs to set up production in other countries?
Step-by-Step Solution
The main reason for MNCs to set up production in other countries is to reduce the cost of production and earn greater profits. They look for locations with cheap labour and proximity to markets.
Detailed Options Breakdown
Option : To help the poor
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Economics: Globalisation and the Indian Economy.
Option 1: To reduce cost of production (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 2: To increase taxes
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Economics: Globalisation and the Indian Economy.
Option 3: To promote local culture
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Economics: Globalisation and the Indian Economy.
💡 Study Guide: This question tests core syllabus concepts from Economics: Globalisation and the Indian Economy. For formulas, key summaries, and mock exam reference guides, read the full Economics: Globalisation and the Indian Economy Revision Notes.