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

Question

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

"The relocation of industry to low-wage countries stimulated world trade and capital flows." Justify the statement.
OR
Why did MNCs begin to shift their production centres to Asian countries ? What were its effects ?

Monjur Alahi

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2025-01-04 04:42

1 Answers

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Salim Ahmed Kawsar · Accepted Answer · 2023-02-05T15:29:48+06:00

(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.