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

Multinational companies (MNCs) are companies that have business activities in more than one country. They are becoming increasingly common in developing countries.

Although

multinational companies have their merits on countries where they are set up and their people, they have

although

demerits on the

both

. In the following lines,

both

the positives and negatives of MNCs will be thoroughly discussed.

To begin

with, the multinational companies have myriad merits. Multinational companies allow counties to purchase imports. The issue of economic development in non-developed countries is an overall lack of resource access.

For example

, what is available to the average consumer in the United States is very different when compared to what is accessible in

country

Suggestion

countries

a country

the country

like Somalia. When multinationals build a presence in

developing world

Suggestion

the developing world

, their capital inflows help countries have more access to the

import

/ export market. That allows them to access better goods, create more opportunities, and eventually raise the standard of living for everyone.

Thus

, multinational companies serve

both

the countries and their people.

On the other hand

, despite the merits previously mentioned, multinational companies have their demerits. Multinational companies

import

skilled

labor

a social class comprising those who do manual labor or work for wages

labour

. The amount of time necessary to create local skills

that

is measured

Suggestion

are measured

in years, not weeks or months. Multinationals invest in local workers to develop their skills, but they

also

need to get their venture

of

from a particular thing or place or position

off

the ground quickly. Most companies in

this

position will

import

the skied

labor

a social class comprising those who do manual labor or work for wages

labour

they require from other counties to meet their needs. As evidence, MNCs in India

import

skilled

labor

a social class comprising those who do manual labor or work for wages

labour

from other countries.

This

means the best jobs are given to people who don`t live in the local economy. Having shown

both

aspects of multinational companies, it can be concluded that the multinationals have their merits and demerits. It is expected that multinational companies will be trying to achieve balance between their economy and local economy.