Multinational companies are becoming increasingly common in developing countries. What are the advantage and disadvantages of this?

In recent years, foreign organizations are being set up at a rapid rate in

third

world countries.

This

essay will discuss the merits and demerits of the aforementioned

occurence

an event that happens

occurrence

. The influx of international establishments has lead to an increase in investments, leading to employment opportunities, and helping boost innovation;

this

is a positive development for the

country

. There is an imminent problem with under-developed societies, in that they are regarded as "consumers" while the developed countries are the "producers"; with the establishment of international institutions, cultural practices and characteristics of the host

country

can blend and benefit from the innovative nature of their developed counterparts.

For instance

, companies like Coca Cola being set-up in a

country

such

as Nigeria, have aided in providing employment for the masses, as well as presenting solutions to certain societal issues through corporate social responsibility campaigns.

However

, a demerit to be associated with

this

, is the danger of losing traditions and intricate cultural values, due to merging of the different cultures.

For example

, a situation whereby the establishment increases the number of expatriates, resulting in a blend of cultures from constant interaction, can cause native residents of the

country

to forget age old traditions in full embrace of the dominant party's culture. To summarize, foreign organizations aid the economy positively by providing

employemnt

the state of being employed or having a job

employment

opportunities and learning experiences, but can be detrimental to the traditions and history of the host society.