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Social Science — CBSE Class 10 board question

Q1. [1]
Which one of the following is a major benefit to a local company which goes for joint production with an MNC ?
  1. (A) MNC provides Money and Technology to local company.
  2. (B) MNC takes all decisions to reduce burden of local company.
  3. (C) MNC purchases all shares of local company for faster production.
  4. (D) MNC might ask for labour and capital investment from local company.
Previously asked in CBSE board exam
2023 32/6/1 Q11
Generated by claude-sonnet-4-6 · 2026-06-15 06:59 · grounding rag
Model Answer

(A) MNC provides Money and Technology to local company.

The benefit to a local company in joint production is two-fold: MNCs provide money for additional investments (e.g., new machines) and bring the latest technology for production.

Source: Chapter 4, Interlinking Production Across Countries

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Explanation

The passage explicitly states: "The benefit to the local company of such joint production is two-fold. First, MNCs can provide money for additional investments… Second, MNCs might bring with them the latest technology." Option (A) directly matches both points. Options (B), (C), and (D) are either incorrect or describe a different MNC activity (buying up local companies). In MCQs, always look for the option that matches the textbook language most closely.

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