How do the local companies start to gain by setting up production jointly with the MNCs? Why do MNCs sometimes buy up local companies?

Sometimes MNCs set up joint-production with local companies. This helps local companies in two ways:

a. MNCs can provide additional money for new investments for the local company, such as machines for faster production

b. Sometimes the MNCs bring with them better technology which benefits the local company.

However, MNCs often buy multiple local companies in order to expand production. In this way, they are also able to control production by dispersing production across countries. They place orders for production from countries providing cheap labour, and then sell these products under their own brand name. Thus, they have the ability to make enormous profits.