Business – 6.1 External influences – Technological | e-Consult
6.1 External influences – Technological (1 questions)
Login to see all questions.
Click on a question to view the answer
| Factor | Before Advanced Digital Tech | After Adoption of Advanced Digital Tech |
|---|---|---|
| Labor Costs | MNCs often chose low‑wage countries to minimise production costs. | Automation reduces reliance on low‑cost labour, allowing relocation to higher‑skill, higher‑cost regions. |
| Supply‑Chain Proximity | Proximity to raw material sources and major markets was critical. | Digital platforms and real‑time logistics enable dispersed production networks, lessening the need for physical closeness. |
| Infrastructure Quality | Limited digital infrastructure could deter investment. | High‑speed internet and cloud services make remote coordination feasible, expanding viable locations. |
Overall, advanced digital technologies give MNCs greater flexibility, allowing them to prioritise factors such as talent availability and market access over traditional cost‑driven considerations.