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

Transnational corporations are becoming more common in less developed nations. The primary benefit of

this

phenomenon is that these companies provide employment opportunities to people living in that country, while the local businesses could suffer from losses due to reduced trade is the main drawback. The principal advantage of setting up multinational firms in developing countries is that it facilitates the individuals of that region with various job offers.

That is

to say, these organizations need people to work for them at different levels of departments in order to function properly and produce products.

As a result

, more number of people will be hired p

roviding

Suggestion

to provide

adequate jobs with appropriate salaries.

For example

, Apple from the USA opened a new branch in India in 2012, providing working options to o

ver

not the same one or ones already mentioned or implied

other

1lakh people from

then

. Despite the benefit of increased jobs t

o

Suggestion

in

public, the regional trading markets will undergo tremendous strain due to decreased sales of their products.

In other words

, people tend to purchase goods from multinational market, which offers them with low prices and better quality in comparison with local shops. Apparently, the regional businesses will face hardship due to financial losses incurred due to less sales.

For instance

, in 2014 Titan stores in Indian had seen a 30% drop in their sales because of the inauguration of new Fossil shops. In conclusion,

although

the main advantage of setting up international firms in developing countries would facilitate their individuals with numerous jobs, the regional trade will see monetary loss and even lead to bankruptcy due to decreased trading.