The benefits of setting up production with MNCs for local companies are

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MNCs provide investment

MNCs want more share of profit from local bodies

MNCs bring new technology

Both (1) and (3)

answer is D.

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Detailed Solution

The benefits of setting up production with MNCs for local companies are MNCs provide investment and MNCs bring new technology.
MNCs can make huge investments in the production unit because it's not only local companies that will benefit from it. When local authorities have all the money that needs to start or expand production, local companies will earn a good profit. Local authorities can take help from MNCs to expand their products globally, as MNCs will use the global market to sell the products that were
made by the local authorities. MNCs will get lots of profit from it as they will have to invest less and, in return, get high earnings. They are usually from developed countries with high technology levels, so they will introduce the latest technologies for production, leading to higher production and higher profits.

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