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.

This

brings lots of pros and cons.

This

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

first

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.

Consequently

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

Secondly

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

This

process not only strengthens the economy, but

also

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.

Thirdly

, 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.

For example

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

also

fastens many processes.

Instead

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.

Moreover

, enormous

waste

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

also

inclined towards purchasing non -recyclable products which adds to the

waste

. There are not even proper plans for

waste

management in growing countries leading to serious consequences

such

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

However

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

waste

disposal and employment wages.