Read the sources given below and answer the questions that follow. Source A Production across cou...
Read the sources given below and answer the questions that follow.
Source A Production across countries
India has highly skilled engineers who can understand the technical aspects of production.
It also has educated English speaking youth who can provide customer care services. And all this probably can mean 50-60 per cent cost savings for the MNC!
(i) To what extent do you agree that India is a good destination for the MNCs
Source B Interlinking production across countries
In general, MNCs set up production where it is close to the markets; where there is skilled and unskilled labour available at low costs; and where the availability of other factors of production is assured. In addition, MNCs might look for government policies that look after their interests.
(ii) How MNC choose a particular place for investment?
Source C Special Economic Zones
In recent years, the central and state governments in India are taking special steps to attract foreign companies to invest in India. Industrial zones, called Special Economic Zones (SEZs), are being set up. SEZs have world class facilities: electricity, water, roads, transport, storage, recreational and educational facilities. Companies who set up production units in the SEZs do not have to pay taxes for an initial period of five years.
(iii) To what extent do you agree that SEZs are encouraged by the government?
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