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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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