UrbanPro

Location Set your Location

Login Ask & Answer Success Stories Paid Courses Free Classes Tuition & Classes Fees Write a Review All Categories Help Center
Post your Learning Need Signup as a Tutor
✕

Popular Cities

Bangalore

Hyderabad

Delhi

Mumbai

Chennai

Pune

Kolkata

Gurgaon

Ahmedabad

Jaipur

Noida

✕

Take Class 10 Tuition from the Best Tutors

  • Affordable fees
  • 1-1 or Group class
  • Flexible Timings
  • Verified Tutors

Book a Free Demo

Class 10 > Learn Class IX-X Tuition > What are the reasons by which MNCs are set up in developing...
✕

Search in

What are the reasons by which MNCs are set up in developing countries?

Asked by Last Modified  

29 Answers

Learn Class IX-X Tuition +1 Social science

Follow 4
Answer

Please enter your answer

Tutor

Developing countries are becoming a hub of MNCs because of the reason that these countries are most eager and are underway to develop and want to be on par with the developed countries. Thus these countries ease up their norms and regulations and try to attract these foreign companies to open up their...
read more
Developing countries are becoming a hub of MNCs because of the reason that these countries are most eager and are underway to develop and want to be on par with the developed countries. Thus these countries ease up their norms and regulations and try to attract these foreign companies to open up their business units in these developing nations. Thus, the profit and ease of doing business in these countries makes them a preferred location for MNCs. They Provide an inflow of capital into the developing country. E.g. the investment to build the factory is counted as a capital flow on the financial account of the balance of payments. This capital investment helps the economy develop and increase its productive capacity. The Harod Domar model of growth suggests that this level of investment is important for determining the level of economic growth.The inflows of capital help to finance a current account deficit. (foreign investment enables developing countries to buy imports).Multinational corporations provide employment. Although wages seem very low to us, people in developing countries often see these new jobs as preferable to working as a subsistence farmer with even lower income. Multinational firms may help improve infrastructure in the economy. They may improve the skills of their workforce. Foreign investment may stimulate spending in infrastructure such as roads and transport. Multinational firms help to diversify the economy away from relying on primary products and agriculture – which are often subject to volatile prices and supply.
read less
Comments
Dislike Bookmark

English Language Trainer and Meditation instructor

the main reasons for the MNC's to setup in developing countries are They Provide an inflow of capital into the developing country. E.g. the investment to build the factory is counted as a capital flow on the financial account of the balance of payments. This capital investment helps the economy develop...
read more
the main reasons for the MNC's to setup in developing countries are They Provide an inflow of capital into the developing country. E.g. the investment to build the factory is counted as a capital flow on the financial account of the balance of payments. This capital investment helps the economy develop and increase its productive capacity. The Harod Domar model of growth suggests that this level of investment is important for determining the level of economic growth.The inflows of capital help to finance a current account deficit. (foreign investment enables developing countries to buy imports).Multinational corporations provide employment. Although wages seem very low to us, people in developing countries often see these new jobs as preferable to working as a subsistence farmer with even lower income. Multinational firms may help improve infrastructure in the economy. They may improve the skills of their workforce. Foreign investment may stimulate spending in infrastructure such as roads and transport. Multinational firms help to diversify the economy away from relying on primary products and agriculture – which are often subject to volatile prices and supply. read less
Comments
Dislike Bookmark

Kapoor sir

To get maximum profit to get favourable policies to cause pollution as they r nt allowed to cause it in their home nation
Comments
Dislike Bookmark

Math & Science

becouse there they are having more opportunity for businees (grasping the more customer) as well as there they care getting more fascility in terms of raw materials low labour cost etc.....
Comments
Dislike Bookmark

Developing countries are becoming a hub of MNCs because of the reason that these countries are most eager and are underway to develop and want to be on par with the developed countries. Thus these countries ease up their norms and regulations and try to attract these foreign companies to open up their...
read more
Developing countries are becoming a hub of MNCs because of the reason that these countries are most eager and are underway to develop and want to be on par with the developed countries. Thus these countries ease up their norms and regulations and try to attract these foreign companies to open up their business units in these developing nations. Thus, the profit and ease of doing business in these countries makes them a preferred location for MNCs. read less
Comments
Dislike Bookmark

TEACHER WITH 13 YEAR,S EXP. IN EDUCATION FIELD

Looking for domestic markets to sell more goods, seeking raw materials and managerial knowledge or technology and trying to find countries where factors of production are cheaper are the main motivations behind global expansion of companies.The motivation of MNCs for investing in these countries differs...
read more
Looking for domestic markets to sell more goods, seeking raw materials and managerial knowledge or technology and trying to find countries where factors of production are cheaper are the main motivations behind global expansion of companies.The motivation of MNCs for investing in these countries differs from that for investing in developed countries, since the return of investment is higher with its risk premium. read less
Comments
Dislike Bookmark

It is aspiration to grow which will be high in developing countries. People want to prove there credentials and thus they get good intelligent work force and the competition between themselves comes to an advantage of the MNC setting up their shops in developing countries. In addition there will...
read more
It is aspiration to grow which will be high in developing countries. People want to prove there credentials and thus they get good intelligent work force and the competition between themselves comes to an advantage of the MNC setting up their shops in developing countries. In addition there will be government support to ensure these MNC generate employment. read less
Comments
Dislike Bookmark

Math & Science Tutor

As we know MNCs ( Multi National Companies) have latest & advance technology. They are already doing good business in some developed countries. In most of developing countries latest & advance technology is not available. MNCs can provide services using these technology and earn profit. For example...
read more
As we know MNCs ( Multi National Companies) have latest & advance technology. They are already doing good business in some developed countries. In most of developing countries latest & advance technology is not available. MNCs can provide services using these technology and earn profit. For example Honda Motors & Suzuki Motors have set up Automobile business in India. Vodaphone Mobile has setup Telecom business in India. read less
Comments
Dislike Bookmark

Communication Engineering Expert

MNC set up in developing countries have a positive effect on host countries because they provide direct employment to local people and transfer of skills through education and experience. They also affect the indirect employment through paying rent for land and buildings and cooperating with local su...
Comments
Dislike Bookmark

Geek

1. The main reason is affordable labor. 2. Further more developing countries have policies which attracts such MNC's. 3. China is world factory reason being affordable labor and export imports costs less. 4. Overall cost on production and maintaining the office and factories is comparatively less. 5....
read more
1. The main reason is affordable labor. 2. Further more developing countries have policies which attracts such MNC's. 3. China is world factory reason being affordable labor and export imports costs less. 4. Overall cost on production and maintaining the office and factories is comparatively less. 5. Under Make In India campaign the main attraction is ease of doing business for eg - The company incorporated in India is required to pay 30% tax+surcharge+education cess on net income earned. It is also required to deduct tax on profits distributed @15.5%+surcharge+education cess. I hope that answers the ques. read less
Comments
Dislike Bookmark

View 27 more Answers

Related Questions

Explain rainbow formation?
I do not know much you know about dispersion and deviation, hence I am replying in an elementary manner. Also an in depth explanation will be needing figures to be drawn which is difficult to be done...
Ravi Ranjan
Electric Current is having direction and magnitude still scalar physical quantities?
Electric current does not obey vector law of addition, but Kirchhoff law, which is algebraic in nature. Thus, it is a scalar quantity.
Ashok Kumar
Name the axes where the two coordinate meet?
The point of intersection of the axes is called the origin.
Bimal
What do you mean by Economic activities?
Actions that envolves the production,distribution and consumption of goods and services at all levels withen a society is termed as economic activities.
Pratik
0 0
7
how change profile from learner to tutor?
You will have to make a profile selecting yourself as a tutor and you should be ready to go.
Allauddin

Now ask question in any of the 1000+ Categories, and get Answers from Tutors and Trainers on UrbanPro.com

Ask a Question

Related Lessons

Develop automaticity in reading with readmyscript.
Develop automaticity with readmyscript program. Automaticity or automatic word recognition is the ability to look at words and read without thinking. Even mild difficulties...

Readmyscript Outreach Program

0 0
0
speed of sound variation with temperature
In Air : Speed of sound at 0 degree = 331 m/s where as speed of sound at 10 degree = 340 m/s .. Speed of sound at 20°C (68°F) is c20 = 343 m/s

Debraj Paul

0 0
0
Trigonometric Formula
We will learn how to remember the trigonometric Formula in different quadrants. 1. Quadrant 1-(0° to 90°) - All functions are positive 2. Quadrant 2-(90° to 180°) - Sine & Cosec...

Akhilesh Choudhary

1 0
0
Electric Current (short note)
Current always flows in opposite direction of electrons ( electrons thats is -ve charged flows through negative terminal of battery/power supply to positive terminal thus) current flows +ve terminal to...

Sudhanshu Shekhar

0 0
0
CORRECT TECHNIQUE = 1ST STEP TOWARDS SUCCESS
CHEMISTRY The main problem among students is fear, when they start studying chemistry from class IX actually. Unfortunately the curriculum in all boards is designed in such a way, that the basic concepts...

Dr. Anirban Chakraborty

0 0
0

Recommended Articles

Meet Swati, a Hindi Tutor from Bangalore

Swati is a renowned Hindi tutor with 7 years of experience in teaching. She conducts classes for various students ranging from class 6- class 12 and also BA students. Having pursued her education at Madras University where she did her Masters in Hindi, Swati knows her way around students. She believes that each student...

Read full article >

Meet Mohammad Wazid, a skilled trainer for...

Mohammad Wazid is a certified professional tutor for class 11 students. He has 6 years of teaching experience which he couples with an energetic attitude and a vision of making any subject easy for the students. Over the years he has developed skills with a capability of understanding the requirements of the students. This...

Read full article >

Meet Raghunandan.G.H, a B. Tech Tutor from...

Raghunandan is a passionate teacher with a decade of teaching experience. Being a skilled trainer with extensive knowledge, he provides high-quality BTech, Class 10 and Class 12 tuition classes. His methods of teaching with real-time examples makes difficult topics simple to understand. He explains every concept in-detail...

Read full article >

Meet Sandhya R, a B.Sc tutor from Bangalore

Sandhya is a proactive educationalist. She conducts classes for CBSE, PUC, ICSE, I.B. and IGCSE. Having a 6-year experience in teaching, she connects with her students and provides tutoring as per their understanding. She mentors her students personally and strives them to achieve their goals with ease. Being an enthusiastic...

Read full article >

Find Class 10 Tuition near you
Class 10 Tuition in Delhi
Class 10 Tuition in Bangalore
Class 10 Tuition in Hyderabad
Class 10 Tuition in Kolkata
Class 10 Tuition in Mumbai
Class 10 Tuition in Chennai
Class 10 Tuition in Pune
Class 10 Tuition in Noida
Class 10 Tuition in Lucknow
Class 10 Tuition in Jaipur

Looking for Class 10 Tuition ?

Learn from the Best Tutors on UrbanPro

Are you a Tutor or Training Institute?

Join UrbanPro Today to find students near you
X

Looking for Class 10 Tuition Classes?

The best tutors for Class 10 Tuition Classes are on UrbanPro

  • Select the best Tutor
  • Book & Attend a Free Demo
  • Pay and start Learning

Take Class 10 Tuition with the Best Tutors

The best Tutors for Class 10 Tuition Classes are on UrbanPro

This website uses cookies

We use cookies to improve user experience. Choose what cookies you allow us to use. You can read more about our Cookie Policy in our Privacy Policy

Accept All
Decline All

UrbanPro.com is India's largest network of most trusted tutors and institutes. Over 55 lakh students rely on UrbanPro.com, to fulfill their learning requirements across 1,000+ categories. Using UrbanPro.com, parents, and students can compare multiple Tutors and Institutes and choose the one that best suits their requirements. More than 7.5 lakh verified Tutors and Institutes are helping millions of students every day and growing their tutoring business on UrbanPro.com. Whether you are looking for a tutor to learn mathematics, a German language trainer to brush up your German language skills or an institute to upgrade your IT skills, we have got the best selection of Tutors and Training Institutes for you. Read more

ThinkVidya Learning Pvt Ltd © 2010-2024All Rights Reserved