Which of the following is a significant benefit of a joint venture between a local and multinational company?

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MNCs can bring the latest technology to production.

MNCs can control the increase in the price.

MNCs can buy the local company.

MNCs can sell the products under their brand names.

answer is A.

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Detailed Solution

MNCs can bring the latest technology to production, which is a significant benefit of a joint venture between a local and multinational company.
An MNC is a company that owns or controls manufacturing in more than one country. At times , MNCs started production jointly with a number of the local companies in these countries. The benefit of such joint production to the local company is twofold. First, MNCs can provide funds for additional investments, such as the purchase of new machines for faster production. Second, MNCs could bring the newest production technology with them. However, the most typical MNC investment strategy involves acquiring local firms before increasing production. MNCs with enormous money can easily accomplish this.

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