Edzy
Single Answer MCQ
Q-00015701

How do MNCs benefit from joint ventures with local firms?

1

By avoiding all forms of licensing

2

By gaining immediate market dominance

3

By accessing local knowledge and networks

4

By eliminating local competition

Reviewed & Verified by Edzy Expert

Sandeep Chaturvedi

Sandeep Chaturvedi

CBSE Social Science & Humanities Reviewer

Social science and humanities educator with 14+ years of experience reviewing CBSE SST, economics, commerce, arts, and vocational content.

M.A. HistoryM.A. Political ScienceB.Ed.

Answer and Solution

Answer

C. By accessing local knowledge and networks

Solution:

Joint ventures allow MNCs to access local knowledge and networks, which can lead to effective market penetration and reduced entry barriers.

Watch Video Solution