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What are the benefits of setting up join production in India

Posted by Vineet Pandey 6 years, 6 months ago

CBSE > Class 10 > Social Science

1 answers

Yogita Ingle 6 years, 6 months ago

Foreign companies gain a lot of advantages by setting up production in India. These are

Cheap labour, i.e. wages the companies pay in developed countries is far more than wages they pay in developing countries.
For lower pay, companies can get additional hours of work.
The companies can save costs and earn higher profits.
Companies cut costs by including lower working conditions that consist of lower safety measures.
Companies take advantage of the workers’ vulnerability because one worker can easily replace another.
Because of much unemployment, many workers are willing to work in unsafe conditions in return for a wage. Hence, this also helps them in cutting costs.

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