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"The relocation of industry to low wage countries stimulates world trade and capital flows". Justify the statement.

Posted by Somu Jais 6 years, 6 months ago

CBSE > Class 10 > Social Science

1 answers

Yogita Ingle 6 years, 6 months ago

(i) MNCs shifted their production units to Asian countries because of cheap labor and low wages.
(ii) Availability of raw materials and a large market.
(iii) Effects: lt stimulated world trade and flow of capital. Countries like India, China, and Brazil underwent rapid economic transformation.It generated employment opportunities and introduced competition in the domestic markets.

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