How are local companies benefited by collaborating with multinational companies? Explain with examples
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Local companies only have a small scale range of products. Because of this, their productivity as well as their sale is very less. So, the profit earned by these companies is mostly used in sustenance. However, if these local companies collaborate with multinational companies, the products are well known since they are branded and they appeal to a wider range of consumers. Since there is a better transport facility, the product can be sold all over the country, increasing the profit tenfold. Therefore, it is extremely beneficial for the local companies to collaborate with multinational companies.
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Local companies benefit by collaborating with MNCs: ... MNCs can finance the additional investments for the local companies like buying new machinery for faster production. 2. MNCs may provide the companies the latest technology for efficient production as MNCs have an international outreach.
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