Question 5 - Practice Questions CBSE - Social Science Class 10 (2023 Boards) - Solutions to CBSE Sample Paper - Social Science Class 10 - Social Science Class 10

A multinational company (MNC) is a corporate organization that owns and controls production in more than one country.

Accordingly, which of following countries has the BEST potential for an MNC to be set up?

A. Country W has a rich culture and ample biodiversity.

B. Country X provides loans to foreign companies easily at high interest rates.

C. Country Y has an educated workforce ready to work for affordable remuneration.

D. Country Z has a rule which allows people from a specific religion to conduct business freely.

Answer:

So, the correct answer is (C): Country Y has an educated workforce ready to work for affordable remuneration. 

Explanation 

Let’s check all the options 

• (A)Country W has a rich culture and ample biodiversity - To set up a country does not need to examine the rich culture and biodiversity. So, this criteria is irrelevant.
  Thus, this option is incorrect

• (B)Country X provides loans to foreign companies easily at high interest rates - Companies established their branches where they can afford reasonable loans. So, this criteria is irrelevant.
  Thus, this option is incorrect

• (C)Country Y has an educated workforce ready to work for affordable remuneration - Countries need skilled and educated labour that can work for affordable remuneration so, they set up their branch where these facilities are available.
  Thus, this option is correct

• (D)Country Z has a rule which allows people from a specific religion to conduct business freely - Countries do not operate where there is a rigid socio-cultural system.
  Thus, this option is incorrect