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By having the intern keep journal entries and writing a paper at the end of the internship allows all involved to see what works or doesn't work as well as to get a perspective of what the intern's thoughts on the company are.  I know of someone who interned at an oil company (paid) and actually ended up going to work for the company.  It was the first time that knew of someone getting paid (and they paid him very well), and he was able to see the day to day workings and get an understanding of what his position would entail.

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