More and more transnational corporations are setting up branches and factories in less developed nations. Some believe that
companies bring positive development in the
, in the opinions of others, these are a threat to the nation.
essay will discuss the benefits and
the drawbacks of
There are numerous advantages of
global movements of multinational companies. They increase job opportunities in poor countries which automatically decrease poverty rate. Big organizations like Apple, Microsoft, and Amazon prefer to recruit local employees because of their knowledge about the domestic market, culture, and preference of citizens.
, underdeveloped nation gets new technology. Multinationals bring with them technology and production methods that are probably new to the
and a lot can
be learnt from these techniques.
As a result
, not only production quality, but
economy grows significantly.
Despite the benefits, there are some drawbacks associated with
trend. The main issue is that domestic business faces a lot of competition in the local market. In other word, the multinationals, establishes their monopoly in the market where they operate,
killing the local businesses. In India,
, many domestic food products shut down because of foreign outlets like McDonalds and Burger King.
has to face problems related to the environment. Many foreign industries use the natural resources of the home
in order to make huge profit which results in the depletion of the resources
causing a loss of natural resources for the economy.
In conclusion, transnational corporations are both boon and bane at the same time. Because of them
can tackle with problems like unemployment burden, standard of living, and technological improvement, but it
has to face issues like business competition for domestic companies, and environmental loss.