Multinational companies are becoming increasingly common in developing countries.what are the advantages and disadvantages

Gradual increase in operations of multinational

companies

within developing nations. In

this

essay we will be discussing the pro’s and cons of

this

development.

However

, I believe that advantages outweigh the drawbacks. While critics argue that increase in multinational

companies

are having a detrimental impact on one’s nation. As, they often believe that major stakeholders in the company are foreigners which will turn their nation totally foreign dependent even though the employees are mostly local.

Furthermore

, People tend to agree that creation of multinational

companies

disturb the culture of that

region

with their foreign influence.

For Example

: - A recent article in a local newspaper compared the dressing of people 15 years prior to MNC’s in their

region

.

However

, I believe that there are more positive attributes than the drawbacks associated with the creation of multinational

companies

. Since, these

companies

operate within the jurisdiction and laws of the host

country

they are majorly required to hire local applicants which creates jobs within that

region

of development.

This

eventually reduces the unemployment rate of that community and increases the living standards of the people.

Also

, it directly promotes expenditure power within that

region

and attracts more foreign Investment. When there are more MNC’s in the

country

the economic condition of that

country

develops due to the Tax generated from it which indirectly helps in the development of Infrastructure and many other projects sponsored by the government.

Moreover

, Any major MNC in a foreign

country

is bound to share, transfer technology to the host

country

which is another positive attribute as it helps the host

country

to learn and develop from it.

For Instance

:- Russia's MNC created jobs and transferred technology with Ukraine 10 years earlier but till date Ukraine reaps the benefits of that deal by creating jobs and enhancing the manufacturing unit of the

country

with the technology transfer deal. In Conclusion,

this

essay highlights the pros and cons of gradual increase of multinational

companies

in developing nations.

However

, I believe that having more multinational

companies

is a positive attribute and it definitely outweighs the drawbacks associated with it.