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

More and more transnational corporations are setting up branches and factories in less developed nations. Some believe that

such

companies bring positive development in the

host

country

’s growth,

however

, in the opinions of others, these are a threat to the nation.

This

essay will discuss the benefits and

also

the drawbacks of

this

trend. There are numerous advantages of

such

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.

In addition

, underdeveloped nation gets new technology. Multinationals bring with them technology and production methods that are probably new to the

host

country

and a lot can

therefore

be learnt from these techniques.

As a result

, not only production quality, but

also

economy grows significantly. Despite the benefits, there are some drawbacks associated with

this

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,

thus

killing the local businesses. In India,

for example

, many domestic food products shut down because of foreign outlets like McDonalds and Burger King.

Also

, the

host

country

has to face problems related to the environment. Many foreign industries use the natural resources of the home

country

in order to make huge profit which results in the depletion of the resources

thus

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

host

country

can tackle with problems like unemployment burden, standard of living, and technological improvement, but it

also

has to face issues like business competition for domestic companies, and environmental loss.