TNCs often set up production facilities in export processing zones for which of the following reasons?
A)cheaper labour and fewer worker protections
B)fewer worker protections and better managerial capabilities
C)better managerial capabilities and better labour-management relations
D)better labour-management relations and simpler employment contracts

Question

Quizplus · Accepted Answer

TNCs often set up production facilities in export processing zones in countries with lower labour costs and fewer worker protections to increase their profit margins. These countries may have less stringent labour laws, lower minimum wage requirements, and limited job security regulations, which makes it easier and cheaper for TNCs to operate.

TNCs Often Set Up Production Facilities in Export Processing Zones