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Home / Doubts and Solutions/CBSE/Class 8/Civics

What is the reason for foreign companies to come to India?

Asked by Topperlearning User 20th April 2016, 2:27 PM
Answered by Expert
Answer:

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.

Answered by Expert 20th April 2016, 4:27 PM
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