Nowadays it is common that international companies set up their business in developing countries and appointing local workers. Along with the benefit does it outweigh the drawbacks also?

In the era of globalization, it is evident a fact that many developed and developing nations come closer with the help of technology, leadership, and international agreements for open trade facilities.
This
allows the affluent countries to establish their offices and industries in the emerging developing nations by recruiting skilled workers from the local
nation
. As per my viewpoint, it brings huge benefits to both parties of people, as both are independent on one another to enhance the overall development.
To begin
with, many multinational companies of the richer nations always look for the strong market to uplift the sales of their products and services at a global level. It not only enhances their overall sales revenues but can
also
manufacture their products at a comparatively low labour rate as compared to the higher wages in their home
nation
.
Similarly
, the government of the emerging nations always invite foreign industries to manufacture their goods by alluring them at huge incentives, availability of low-cost local material and lower wages of skilled workers.
Therefore
, many developed nations had created a vast market for the consumer products that allow them to establish their offshore offices and factories in these regions which
also
enhances economic development.
For instance
, in a country like China, which has huge population and major market to increase the product sales for international companies, they have started offering those companies to set up their industries there at huge incentives and low cost and eventually China became a global hub of manufacturing in two decades.
Moreover
, many local people
also
have a lot of advantages through
this
development. People of local countries can get exposure to language, traditions, customs, and cultures from the people of the foreign
nation
.
Thus
, it can
also
increase the tourism sector and allows more international visitors to explore natural places in developing countries. It not only creates employment for the local people but
also
helps them to enhance their lifestyle.
However
, there are some demerits when international industries set up in these regions. They bring foreign culture to these areas and local people follows them which endangers their local tradition and culture. In conclusion, as per my viewpoint, the government of developing
nation
should attract foreign companies to establish their offshore offices and factories through incentive schemes which create huge employment to local people and
also
boost the tourism.
Submitted by Nikita & Kash  on

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