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




developing country


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