[short_answer] When a large MNC sets up joint production with a local Indian company, what benefits can the local company gain from this arrangement? Explain with reasons.
Generated by claude-sonnet-4-6 · 2026-06-26 13:26 · grounding rag
Model Answer
When a large MNC sets up joint production with a local Indian company, the local company gains two main benefits:
- Additional investment/funds: The MNC provides money for buying new machines and equipment, enabling faster and larger-scale production.
- Latest technology: The MNC brings advanced technology for production, helping the local company improve quality and efficiency.
These benefits allow the local company to modernize and expand, making it more competitive in both domestic and global markets.
Source: Chapter 4, "Interlinking Production Across Countries"
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Explanation
- The textbook explicitly states the benefit is "two-fold" — extra money and latest technology. Examiners expect both points to be mentioned clearly.
- Add a brief reason for each point (why it helps) to complete the 3-mark requirement.
- Do not add points not in the textbook (e.g., market access, brand value) — stick to the source.
- The word "two-fold" from the textbook is a good signal word to use to show you know the chapter.