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

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In today's world, there are more varies in types of business. In developing countries, the number of multinational
companies
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is growing and it is a common sort of job during
this
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era.
This
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provides benefits,
however
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, the drawbacks
also
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appeared, and we will explain now.
Firstly
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, as
such
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business could be regarded as developed and underdeveloped country connection, it causes more profit by paying fewer exportation taxes.
For instance
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, a general company may be facing a high volume of taxes from international export and import.
Conversely
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, as those multinational
companies
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create other advantages, those fees can be decline.
Secondly
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,
this
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leads to less cost which benefits both capitalists and their customers. Granted,
this
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may cause more income to the developed countries, it is negatively affecting local
companies
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to have a narrow range of market. To clarify, one who makes business-related to goods within the country could be disadvantageous due to the less of customers. In conclusion, even though the binational businesses are giving a high amount of profit because the less of tax and cost of the product, it impacts the local
companies
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in the light of fighting over their targets. In the long run, if the number of international types of businesses is increasing, the traditional
companies
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should explore solutions to deal with
this
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issue.
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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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