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Why may a multinational company prefer setting up a production unit in developing country instead of exporting finished goods to the country?

Highlight the reasons why a multinational company may prefer setting up a production unit in a developing country instead of exporting finished goods to the country.

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(i) To make transport cheaper.

(ii) To make products cheaper hence more sales.

(iii) To take advantage of cheap labour available in the country.

(iv) To avoid paying tax on the goods that would otherwise be imports.

(v) To take advantage of available raw materials in the country.

maurice.mutuku answered the question on July 7, 2017 at 05:47

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Why may a multinational company prefer setting up a production unit in developing country instead of exporting finished goods to the country?

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