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

Opening multinational companies have become quite a trend in developing nations.

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brings lots of pros and cons.

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essay intends to analyse both the positive and negative impacts of it. The

first

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and foremost advantage of multinational companies is in creating employment, especially for local people. A number of employees are needed to complete several tasks within a company which results into numerous job openings. It has been observed that local people are always preferred to avoid travel overheads.

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, it improves the economy of the area and in turn the whole nation.

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, when an entrepreneur desires to extend his business in another country, a certain amount needs to be paid in the form of taxes.

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process not only strengthens the economy, but

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improves the living standard of people by giving employments. To illustrate, the developed countries like the United States and Japan opened their software and car companies in developing countries like India which certainly has created lots of jobs for Indians.

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, with the advent of multinational companies, a number of technological products become available to other industries and the common people, which is considered as a potential growth of any country.

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, software companies develop many applications for restaurants, banks and so on, which not only reduces the manual work but

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fastens many processes.

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of maintaining registers for bank customers; computer databases and other applications can handle and manage the bank related services. On the downside, a few of the companies exploit their employees by paying them less wages for cost reduction and incurring more profits.

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, enormous

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and rubbish has been produced by these companies which sometimes is non-biodegradable. To use cheap stuff, the MNC’s are

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inclined towards purchasing non -recyclable products which adds to the

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. There are not even proper plans for

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management in growing countries leading to serious consequences

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as an increase in pollution. To sum up, Multinational companies are both boon and bane for the developing countries.

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, a number of cons can be overcome by implementing strict policies against

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disposal and employment wages.