Edzy
Single Answer MCQ
Q-00045519

What is the reason for MNCs to collaborate with local firms in joint ventures?

1

To avoid foreign investment regulations

2

To pool resources and share risks

3

To sidestep labor laws

4

To monopolize local markets

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

B. To pool resources and share risks

Solution:

MNCs collaborate with local firms to pool resources, share expertise, and mitigate risks associated with market entry, making the venture more viable for both parties.

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