Question

Why MNCs set up production jointly with some of the local companies Answer - (1)MNCs can provide money for additional investment, like buying new machines for faster production (2) MNCs might bring with them the latest technology for production.

Answer 1

Explanation:

MNCs set up factories and offices for production. The money that spent to buy assets such as lands ,building ,machines and other equipment is called investment. Investment made by MNCs is called foreign investment. Any investment is made with the hope that these assets will earn profits.

At times ,MNCs set up production jointly with some of the local company of such joint production is two fold.