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production across countries.
Reason : MNCs disrupt the production processes in domestic country.
In general, MNCs set up production where it is close to the markets; where there 1
7 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. You will read more about the
policies later in the chapter.
Analyse the situational information given above and choose the option
that best reflects the idea.
a) Division of labour
b) Factors deciding the location for setting up an MNC
c) Globalisation
d) Privatisation
8 These large MNCs do not determine which one of the followings 1
a) Price
b) Quality
c) Labour conditions
d) Political conditions

SUBJECTIVE ASSIGNMENT

Sl. Questions
No. Page Mar Skill Level
No. ks
1 State True/false 57 1 A E
MNCs are playing a major role in the globalisation
process.

2 What is investment? 57 1 R E

3 Fill in the blanks 57 1 H A
The money that is spent to buy assets such as land,
building, machines and other equipment is called
________.

4 Examine any three conditions which should be taken 57 3 A A
care of by Multinational Companies to set up their