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

In today's world, there are more varies in types of business. In developing countries, the number of multinational
companies
is growing and it is a common sort of job during
this
era.
This
provides benefits,
however
, the drawbacks
also
appeared, and we will explain now.
Firstly
, as
such
business could be regarded as developed and underdeveloped country connection, it causes more profit by paying fewer exportation taxes.
For instance
, a general company may be facing a high volume of taxes from international export and import.
Conversely
, as those multinational
companies
create other advantages, those fees can be decline.
Secondly
,
this
leads to less cost which benefits both capitalists and their customers. Granted,
this
may cause more income to the developed countries, it is negatively affecting local
companies
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
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
should explore solutions to deal with
this
issue.
Submitted by littlesenile 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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