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CBSE-class-8-civics---->View question

What are the advantages to foreign companies in setting up production in India? - CBSE class 8 civics

What are the advantages to foreign companies in setting up production in India?

Asked On2017-07-26 12:57:35 by:milan-ransingh

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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.


Answerd on:2017-07-27 Answerd By:Aparna-Dasgupta

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