Reasons why a multi-national company may prefer setting up a production unit in developing country instead of exporting finished goods to the country

Reasons why a multi-national company may prefer setting up a production unit in developing country instead of exporting finished goods to the country

• Take advantage of cheap labour in the country
• Avoid paying tax on the goods that would otherwise be imports
• To take advantages of suitable raw materials in the country
• To make products cheaper hence more sales
• To make transport cheaper