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

The presence of MNCs is growing in progressing nations, and they are becoming a common sight. While

this

development is advantageous for the job market because it will provide multiple occupations for youngsters,

in contrast

, local businesses are continually losing their market. One of the primary merits of the increasing presence of global organizations is that they create a myriad of opportunities for graduates. When students finish their degrees, MNCs hire these professionals, resulting in an employed society.

For example

, according to a recent survey by the BBC, in India, 83% of engineers are earning their livelihood through companies

such

as TCS, Apple and Google.

Hence

,

this

development is beneficial for youngsters because they easily get their bread and butter by working for them.

On the contrary

, native markets are shutting down and losing their significance.

This

is because people prefer to purchase their groceries from malls, and because of

this

, local shops are losing their customers.

For instance

, recent research at Oxford University stated that if FDI in fruit market keeps on growing at the current pace, 73% of vendors have to lose their businesses.

Thus

, it is apparent that

this

progress is negatively impacting the native vendors. To conclude, the aforementioned points make it evident that the positive aspect of MNCs becoming common in developing nations is that youngsters will get work.

However

, the major drawback is that local shops and markets are at the loss, and it is obligatory to delineate and prohibit excessive FDI in local markets.