State any two ways in which a local company benefits when it enters into a joint production arrangement with…

Question

State any two ways in which a local company benefits when it enters into a joint production arrangement with an MNC.

Accepted Answer

## Model Answer When a local company enters into a joint production arrangement with an MNC, it benefits in two ways: 1. **Additional investment**: The MNC provides money for additional investments, such as buying new machines for faster production. 2. **Latest technology**: The MNC brings the latest technology for production, improving efficiency and output. Source: Chapter 4, *Interlinking Production Across Countries* --- ## Explanation The textbook states these two benefits explicitly and directly — examiners expect both to be mentioned. Avoid vague answers like "more profit" unless you link it to one of these two points. Each benefit is worth 1 mark, so name and briefly explain both. No extra detail is needed for a 2-mark answer.

Social Science (087) — AI-generated practice question