Choose the given statement is True/False

Local companies are exploited by joining hands with MNCs for production.

see full answer

Your Exam Success, Personally Taken Care Of

1:1 expert mentors customize learning to your strength and weaknesses – so you score higher in school , IIT JEE and NEET entrance exams.

An Intiative by Sri Chaitanya

True

False

answer is B.

(Unlock A.I Detailed Solution for FREE)

Best Courses for You

JEE

NEET

Foundation JEE

Foundation NEET

CBSE

Detailed Solution

The given statement is false.
Local companies indeed benefited from joining hands with the MNCs for production. Globalisation has given rise to multinational companies across the world. To reduce the cost of production, many MNCs carried out the production of their products in more than one country. Many times they set up joint production with local companies. This has two-fold benefits to local companies.
1) These companies lacked the capital to buy new machinery or expand their operations. The MNCs provided them with this capital to expand.
2) MNCs also brought new technology of production with them. This helped the local companies to produce efficiently and decreased their cost of production.
The correct statement would be that local companies benefited by joining hands with MNCs for production.

Watch 3-min video & get full concept clarity