Nowadays many companies have manufacturing facilities in different countries. Does this development have more advantages or disadvantages
As we are living in the technology era we can see giant technological companies have extended their product lines across the world and built different factories on most continents.
This
global expansion of manufacturing facilities has both advantages and disadvantages.
On the one hand, building new factories across the world has decreased the unemployment rate globally. Top-notch technological firms tend to expand their product assembling facilities out of their mainland and establish them in the developing countries
so that they can take advantage of both cheap workforce and new customers, also
the target country will benefit from that new manufacturing facilities since the knowledge will be shared among its engineers and the ratio of its unemployed population will decrease. For example
, Apple the most valuable company in the world assembles its mobile devices in China and both Apple and China have been benefiting from this
issue a lot.
On the other hand
, there are some problems with the development of new manufacturing complexes in other countries
. Firstly
, it may hurt the national small businesses as they cannot compete with the multinational big firms, therefore
, they will lose their target audience and will be left with no choice except to close their business. Secondly
, building new factories causes more industrial pollution speeding up gas emitting, water and air pollution across the country which has accepted the international industrial expansion. For an instance, China and India as two countries
which have accepted the most foreign investment in recent years, unfortunately, are among the most polluted countries
.
In conclusion, Although
numerous benefits of creating new product lines in different countries
outweigh the drawbacks, no one can neglect the existed disadvantages. Therefore
, I think there should be global rules banning companies from environmental-careless development. Moreover
, countries
which host world-class companies as their second
home, have to define some protocols to support their local businesses to stay alive in the competition.Submitted by saeed.garmsiri on
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