What is the reason for foreign companies to come to India?
One reason why foreign companies come to India is because of cheap labour.
- Wages that companies pay to workers in developed countries are far higher than what they have to pay to workers in poorer countries such as India.
- Companies can get longer hours of work for lower pay.
- Additional expenses (e.g. housing facilities for workers) are also fewer.
Thus, companies can save costs and earn higher profits.
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