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

Recently,there has been a world preference for a multinational economic market.

This

has led to an increase in large

business

investments in developing communities as a means for supporting their economy, whereas some people claim that

this

trend has led to drastic consequences.

This

phenomenon has its benefits and drawbacks that I will discuss in

this

essay. On one hand, multinational companies' choice to invest in poor countries has several advantages. The

first

impact appears as these organizations attempt to solve the local unemployment issue, securing a better life standard for citizens. The investment of Japanese car factories,

for instance

, in Egypt has led to economic flourishment through offering jobs for Egyptians and opening a prominent domestic market for foreign cars and their original utilities. Not only do these industries play an important role in developing the national financial status, but

also

they are money savers for

business

owners to construct their companies in suffering nations. Since the largest amount of human labour exists in developing countries,

business

owners prefer to pay low salaries for these in favour of high-profit rates from the international market.

Therefore

, multinational organizations are pivotal to the economy of

the

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developing societies as well as the profits of the

business

itself. 

On the other hand

, opening the borders for global industries to be established on developing lands has its remarkable disadvantages. These drastic consequences appear in the exploitation of citizens for the sake of the financial associations' goals. In Bangladesh,

for example

, workers in foreign textile companies work for more than 15 hours daily to earn low salaries in order to secure a reasonable standard of living for their families.

This

inhumane exploitation does not only affect the workers but

also

the society where individuals suffer fragmentation and medical issues that are hard to solve by the government.

Thus

, it is believed that the risks of accepting global investments in poor nations are difficult to ignore.  In conclusion, I believe that developing countries should encourage global investments, but these governments should legislate laws to protect their citizens from being exploited and to secure reasonable wages and medical insurance for them.

Hence

, governments should be aware of the advantages and disadvantages of having international businessmen establishing their organizations locally to protect their individuals.