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

As a result

of globalization, developing countries are beginning to open their doors to welcome multinational

companies

into their countries.

This

essay will discuss the advantages as well as the disadvantages of

this

phenomenon. The most obvious advantage is the increasing job opportunities. When a company from abroad comes to a

country

, it will have to hire local workers.

This

will improve the level of employment in that

country

,

hence

the economy of the nation as a whole will

also

be improved.

For example

, one shoe factory in one city can employ thousands of people and

thus

boost the economy of that city. Another advantage is that people can enjoy using the products that are previously unavailable in their

country

. On the other end of the spectrum, the presence of multinational

companies

can bring damage to some national

companies

. Many small and medium enterprises could not compete and had to close their businesses. They generally have less capital compared to huge multinational

companies

, so it is not possible for them to create more products to increase their market shares.

For instance

, the aforementioned shoe factory can produce more shoes within a shorter period compared to local handcraftsmen who can only produce one pair of shoes every day. In conclusion, the growth of multinational

companies

in developing countries can be beneficial for the economic growth of the

country

but it can

also

kill the smaller businesses. It is important for the local government to keep supporting the domestic enterprises so they can stay alive.