📚 CBSE Grade-10 Study Guide
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Social Science (087) — AI-generated practice question

AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.

Q1. [1] straightforward thorough-understanding
[mcq] Which of the following is the most significant way through which MNCs extend their production activities to other countries? (A) Exporting goods directly to foreign markets (B) Setting up a new production unit in a foreign country entirely on their own (C) Buying out or investing in an existing local company in a foreign country (D) Sending managers abroad to supervise production
  1. A Setting up brand new factories in partnership with local companies
  2. B Placing orders with small local producers
  3. C Buying up existing local companies and then expanding production
  4. D Sending machinery and equipment as gifts to local producers
Generated by claude-sonnet-4-6 · 2026-06-26 13:26 · grounding rag
Model Answer

Option C — Buying up existing local companies and then expanding production is the most significant route, as stated in the textbook.

Source: Interlinking Production Across Countries, Chapter 4

Explanation

The textbook explicitly states: "the most common route for MNC investments is to buy up local companies and then to expand production." Examiners expect you to identify Option C and may ask you to justify it briefly using this line. Other options (joint production, placing orders) are mentioned but described as less common methods.

Previous-year CBSE Grade 10 board exam questions, organised by subject and chapter, each with a model answer — free to read and print.