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

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. The most prominent benefit of global companies is that they have generated employment even in underdeveloped countries.

In other words

, these companies prefer a country where they can procure the cheapest and the best labour along with the raw materials,

this

in turn, generates taxes for the poor country and job opportunities for the local employees, so the living standard of the provincial improves. Zara a top leading fashion brand,

for instance

, has set up a textile unit in Bangladesh, considering the cheap cotton and skilled manpower for weaving clothes.

Moreover

, these global companies as a part of corporate social responsibility set up schools in the rustic,

consequently

,

this

bolsters the enhancement of the education level in a province.

On the other hand

, one of the obvious disadvantages of the multinational companies is that the small scale local companies are destroyed, because they cannot compete with the big organizations. Most of these small units engage in niche traditional artwork,

as a result

, the local culture is destroyed and cannot be preserved for upcoming generations.

Furthermore

, since the main motive of the companies is to earn enormous profits, so they are least bothered about environmental degradation. To conclude, global organizations have raised the standard of the world by providing employment and education,

however they

Accept comma addition

however, they

should respect the local rituals and should consider these countries as their motherland.