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

The presence of international companies in developing nations is becoming more common.

This

essay will argue that the low tax rate and improving the economical state of the countries are the benefits, whereas the subpar infrastructure and the problem acclimating are the drawbacks. In terms of advantages, multinational companies when in a developing nation benefit from a low levy and the country is provided with a boost to their economy.

That is

to say ,It is common for impoverished nations to lower their company taxes to encourage big conglomerates to move their main offices to them.

This

will benefit both, one receives low levies while the other economy is reinvigorated.

For example

,Google moved its head office to Ireland following the former lowering its taxes making it the fastest growing GDP in the world. In terms of disadvantages, the business will face a low framework and the hardships of moving to a new place.

In other words

, a multinational business moving from a developed nation to a non-developed one will have to take into account that the new country will unavoidably suffer from the low level of infrastructure hindering their work and advancement.

For example

, when Google moved to Ireland the internet bandwidth provided for them was a hindrance.

Additionally

, it is common for them to move to a nation that doesn't speak their language causing the businesses some problems and its workers to feel lonely and outsiders in their new home decreasing their output.

For example

, companies that moved to Bolivia admitted that not knowing the common tongue made efficiency go down. In conclusion, the trend of businesses migrating to developing countries, has benefits like low duty and improving the local economy, but

also

drawbacks low infrastructure and problems associated with moving.