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

In various underdeveloped nations around the world, the existence of intercontinental enterprises became widely accepted. While

this

offers few advantages, there is

also

a number of disadvantages which are worth considering. There are two main benefits of dealing with multinational corporations.

Firstly

, these giant institutions have common multiple financial resources.

For example

, HSBC bank is owned by different countries, and each of them has a personal share.

Such

banks can provide excellent support to developing countries during crises.

In addition

, international business is growing faster each day,

thus

, the privilege of having multinational

companies

is to facilitate and transfer the experiences,

besides

, the cash flow.

Therefore

, these types of

companies

are becoming inevitable for the economic growth of some cities.

Conversely

, various drawbacks may be noted. In the

first

place, is the extreme influence and power of similar organizations. They can easily change the political map of any country or interfere with the decision-makers policies and guidances.

For instance

, wars and conflicts between countries were initiated due to oil industry disagreements, as Iraq and Iran war in 1985.

Additionally

, the loyalty of

such

companies

is not related to the places where they have their business. Due to that, they might not stand by any situation or cause that require national support.

Hence

, governments have to pay attention to

such

companies

. In conclusion, multinational

companies

can provide developing areas with support in terms of cash flow and experience.

However

, they might

also

interfere in their interior decisions and not paying attention to national issues.