Question

The mncs of a country sets up a production jointly with local companies of ohter country.State its benefit

Answer 1

if mncs will set up a production joitly with local companies of other countries then the benefit is local companies will get capital and technology from the mnc

Answer 2

The benefits of MNCs of a country to setup a production jointly with local companies of other countries include :

1.  It leads MNCs to bring latest technology for production with local company.

2.  It enables local companies to buy new machines for faster production as they are being provided huge investments by MNCs.

3.  It provides MNCs with cheap labor and thus reduces the price of commodity.