Question

How are local companies benefitted by collaborating with multinational companies? Explain with examples.(All India - 2013)

Answer 1

☘️ Answer:

1. First, the MNCs provide money for additional investments for faster production.
2. Second, MNCs bring with them the latest technology for enhancing and improving the production.
3. Some Indian companies have gained from successful collaborations with foreign companies.
4. Globalization has enabled some companies to emerge as multinationals.
5. Parakh Foods was a small company which has been bought over by a large American Company — Cargill Foods. Parakh foods had built a large marketing network in various parts of India as a well- reputed brand. Parakh Foods had four oil refineries whose control has now shifted to Cargill. Cargill is now the largest manufacturer of edible oil in India making five million pouches daily