Which one of the following is a major benefit of a joint production between a local company and a multinational company?

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MNCs can bring the latest technology to production

MNCs can control the increase in price

MNCs can buy the local company

MNCs can sell the products under their brand name

answer is A.

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Detailed Solution

MNCs can bring the latest technology to production, a significant benefit of the joint output between a local company and a multinational company.
In a developed country, one way MNCs control production is by placing orders for production with small producers. This is mainly done for garments, footwear, sports items, etc.
Production for these goods is carried out by large numbers of small producers across the world. These large MNCs bring in the required technology for production to these small producers, which helps them ramp up their production. In such joint production, the small producers have the advantage of access to the latest technologies, while the MNCs have the upper hand in controlling the production price and selling those products under their brand name.

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