The decision of MNCs to relocate production to Asian countries.

Solution

(i)Wages were relatively low in countries like China. Thus they became attractive destinations for investment by foreign MNCs competing to capture world markets.

(ii)Most of the TVs, mobile phones, and toys seen in the shops are made in China, this is because of the low-cost structure of the Chinese economy, most importantly its low wages.

(iii)The relocation of industry to low-wage countries stimulated world trade and capital flows. In the last two decades the world’s economic geography has been transformed as countries such as India and China have undergone rapid economic transformation.

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The Making Of A Global World

The decision of MNCs to relocate production to Asian countries.

Some More Questions From The Making of a Global World Chapter

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