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Direction: Mark the option which is most suitable:
Assertion : Local businesses may set up joint production processes with MNCs and earn higher profits.
Reason : MNCs can provide money for additional investments, like buying new machines for faster production.
  • a)
    If Both assertion and reason are true, and reason is the correct explanation of assertion.
  • b)
    If Both assertion and reason are true, but reason is not the correct explanation of assertion.
  • c)
    If Assertion is true, but reason is false.
  • d)
    If Both assertion and reason are false.
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Direction: Mark the option which is most suitable:Assertion : Local b...
At times, MNCs set up production jointly with some of the local companies of the host countries. The benefit to the local company from such joint production is twofold as MNCs can provide for additional investments and can bring in newer technology of production that results in fast-paced production.
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Direction: Mark the option which is most suitable:Assertion : Local b...
Assertion: Local businesses may set up joint production processes with MNCs and earn higher profits.

Reason: MNCs can provide money for additional investments, like buying new machines for faster production.

The correct answer is option 'A': If both the assertion and reason are true, and the reason is the correct explanation of the assertion.

Explanation:

- When it comes to joint production processes, local businesses can benefit from collaborating with multinational corporations (MNCs). By working together, they can leverage each other's strengths and resources to achieve higher profits.

- MNCs often have access to greater financial resources compared to local businesses. Therefore, the reason provided in the assertion is valid. MNCs can provide the necessary funds for additional investments, such as purchasing new machines for faster production.

- By introducing new machines, the production process becomes more efficient and can result in increased output. This increased output can lead to higher profits for the local businesses involved in the joint production process with MNCs.

- Additionally, MNCs bring their expertise and global market knowledge to the partnership. This can help local businesses expand their customer base and access new markets, further contributing to increased profits.

- Collaborating with MNCs also allows local businesses to learn from their advanced technology, management practices, and quality control measures. This knowledge transfer can enhance the capabilities of local businesses and enable them to compete on a global scale.

- However, it is important to note that the success of joint production processes depends on various factors such as effective communication, mutual trust, and a well-defined partnership agreement. Local businesses need to carefully evaluate the potential benefits and risks before entering into such collaborations.

- In conclusion, the reason provided in the assertion is a correct explanation for the assertion itself. Joint production processes with MNCs can indeed enable local businesses to earn higher profits by accessing additional investments and leveraging the expertise and resources of MNCs.
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Read the source given below and answer the questions that follows:India has become a second home to many multinationals’ over the years. MNCs set up offices and factories for production in regions where they can get cheap labour and other resources. This is done so that the cost of production is low and the MNCs can earn greater profits. MNCs set up production where it is close to the markets; where there is skilled and unskilled labour available at low costs; and where the availability of other factors of production is assured. But the most common route for MNC investments is to buy up local companies and then to expand production. MNCs with huge wealth can quite easily do so. To take an example, Cargill Foods, a very large American MNC, has bought over smaller Indian companies such as Parakh Foods. Parakh Foods had built a large marketing network in various parts of India, where its brand was well-reputed. Also, Parakh Foods had four oil refineries, whose control has now shifted to Cargill. Cargill is now the largest producer of edible oil in India, with a capacity to make 5 million pouches daily. Large MNCs in developed countries place orders for production with small producers. Garments, footwear, sports items are examples of industries where production is carried out by a large number of small producers around the world. The products are supplied to the MNCs, which then sell these under their own brand names to the customers. These large MNCs have tremendous power to determine price, quality, delivery, and labour conditions for these distant producers. Ford Motors, an American company, is one of the world’s largest automobile manufacturers with production spread over 26 countries of the world. Ford Motors came to India in 1995 and spent Rs. 1700 crore to set up a large plant near Chennai. This was done in collaboration with Mahindra and Mahindra, a major Indian manufacturer of jeeps and trucks.Answer the following MCQs by choosing the most appropriate optionQ. Investment made by MNCs is called

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Direction: Mark the option which is most suitable:Assertion : Local businesses may set up joint production processes with MNCs and earn higher profits.Reason : MNCs can provide money for additional investments, like buying new machines for faster production.a)If Both assertion and reason are true, and reason is the correct explanation of assertion.b)If Both assertion and reason are true, but reason is not the correct explanation of assertion.c)If Assertion is true, but reason is false.d)If Both assertion and reason are false.Correct answer is option 'A'. Can you explain this answer?
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Direction: Mark the option which is most suitable:Assertion : Local businesses may set up joint production processes with MNCs and earn higher profits.Reason : MNCs can provide money for additional investments, like buying new machines for faster production.a)If Both assertion and reason are true, and reason is the correct explanation of assertion.b)If Both assertion and reason are true, but reason is not the correct explanation of assertion.c)If Assertion is true, but reason is false.d)If Both assertion and reason are false.Correct answer is option 'A'. Can you explain this answer? for Class 10 2024 is part of Class 10 preparation. The Question and answers have been prepared according to the Class 10 exam syllabus. Information about Direction: Mark the option which is most suitable:Assertion : Local businesses may set up joint production processes with MNCs and earn higher profits.Reason : MNCs can provide money for additional investments, like buying new machines for faster production.a)If Both assertion and reason are true, and reason is the correct explanation of assertion.b)If Both assertion and reason are true, but reason is not the correct explanation of assertion.c)If Assertion is true, but reason is false.d)If Both assertion and reason are false.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Class 10 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: Mark the option which is most suitable:Assertion : Local businesses may set up joint production processes with MNCs and earn higher profits.Reason : MNCs can provide money for additional investments, like buying new machines for faster production.a)If Both assertion and reason are true, and reason is the correct explanation of assertion.b)If Both assertion and reason are true, but reason is not the correct explanation of assertion.c)If Assertion is true, but reason is false.d)If Both assertion and reason are false.Correct answer is option 'A'. Can you explain this answer?.
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