What advantages do the local companies have by setting up joint production with MNCs?

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

More resources

More profit

Latest technology and additional investment

Foreign exchange

answer is C.

(Unlock A.I Detailed Solution for FREE)

Best Courses for You

JEE

NEET

Foundation JEE

Foundation NEET

CBSE

Detailed Solution

Local companies have the latest technology and additional investment advantages by setting up joint production with MNCs.
1) Additional investment- When any multinational company enters a country to do business jointly with the local company, they bring money to make the required additional investment for enhancing production in the market.
2) Latest technology- Multinational companies bring the latest technology with them. The advanced technology attracts local companies for efficient production as they have a small outreach and want to explore more to disseminate their production units.
When local companies collaborate with MNCs, their production does not only increase, their efficiency increases naturally.

Watch 3-min video & get full concept clarity