Question

The MNC’s of a country sets up a production jointly with the local company of other country. Suggest any one benefit of this joint production to the local company.

Answer 1

Local company join MNC and increase the sale and increase the business at international levels example like parrot food which was bought by Cargill foods it is a big American

Answer 2

Benefits of joint production:

Local company can get investment from MNC.

• Many local companies are initiated but they cannot sustain.
• When the company is initiated it goes well because the ideas are new.
• But after sometimes, the companies may not have enough money and R&D to innovate their ideas.
• Here, MNCs can help the local companies by sponsoring for advertisement and research for innovation.