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

Multinational firms are setting up offices in developing countries. The advantages of
this
are that they create job opportunities and a better lifestyle for the citizens of the developing nation, but there are
also
drawbacks to be taken into account. One benefit of global organizations being increasingly common in a developing society is that they create job opportunities.
In other words
, they provide employment for the citizens in that nation.
Furthermore
, having multinationals set up branches in a developing society is advantageous because people in that country can live a good life and can provide for their families.
For example
, Graduates in China do not travel to other countries for employment because multinational companies
such
as Apple and Google are situated there so they gain employment easily.
Therefore
, having international firms establish offices in an upcoming nation, provides job opportunities and better living. One drawback of multinational company investment in developing societies is that workers are forced to perform tasks harder than their counterparts in developed countries.
Moreover
, workers complain that their employers compel them to work overtime in other that they meet the company's targets. Another issue is that the employees are not well paid. Multinational companies want more work done with cheap labour
hence
their low remuneration.
For instance
, the employees of a Telecommunication company, MTN Nigeria, are forced to work more than twelve hours a day to complete tasks and if they do not comply, they would be laid off.
That is
to say that global organizations in a developing country could lead to overworking of the employees. In conclusion, while the developing world benefits from global companies being situated there, it could lead to working longer hours and earning minimal wages.
Submitted by Florence on

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Topic Vocabulary:
  • Globalization
  • Multinational corporations (MNCs)
  • Foreign direct investment (FDI)
  • Developing economies
  • Infrastructure development
  • Capacity building
  • Cultural diversity
  • Sustainability
  • Corporate social responsibility (CSR)
  • Technological transfer
  • Economic disparity
  • Market saturation
  • Brain drain
  • Indigenous industries
  • Expatriate management
  • Trade imbalance
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