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Joint production with a local company allows an MNC to

Ause local knowledge of markets, regulations, contacts and supply chains
Bavoid all taxes
Cbypass labour laws
Doperate in secrecy
Answer & Solution
Correct answer: A. use local knowledge of markets, regulations, contacts and supply chains
1. Joint ventures help MNCs leverage local-partner knowledge and connections. 2. The Indian partner gains capital and technology in return. 3. Such partnerships are common when MNCs enter Indian markets. _Source: NCERT Class 10 Understanding Economic Development, Ch 4 "Globalisation and the Indian Economy"_
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