The 20th century has witnessed some phenomena such as, globalization, industrial revolution and the changes that these have brought in are beyond our wildest expectations. Globalization has made the world as one virtual nation by dissolving the physical boundaries, whereas the industrial revolution has allowed companies to travel across the globe for the most suitable location, thereby the multinational companies were born. These organizations have a plethora of benefits as well as drawbacks, which will be outlined in the essay.