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

Recently, a growing number of multinational

companies

have been established in developing

countries

.

Thanks

to these

companies

, many

workers

in developing

countries

can get more opportunities to get jobs.

However

,

in contrast

to positive effects, there are considerable problems in terms of heavy workloads and lack of welfare for

employees

by multinational

companies

.

To begin

with, many

workers

in underdeveloped

countries

now have the chance to get employed

thanks

to multinational

companies

. The reason why these

companies

have a tendency to settle down in developing

countries

is that these

countries

provide relatively cheap

labor

Change the spelling

labour

show examples

costs compared to high-developed

countries

. For multinational

companies

, there are much more financial advantages in hiring workforces in developing

countries

compared to hiring

employees

in multinational

companies

’

countries

.

Consequently

, more and more unemployed persons in developing

countries

are likely to get employed by multinational

companies

, and

this

will lead these developing

countries

to economic growth in the long run.

For instance

, in 2021, Samsung built a plant in Vietnam. Vietnam’s minimum wage was 70% cheaper than Korea’s at that time.

Thanks

to Samsung, there were 5000 occupations made to hire Vietnamese.

On the other hand

, there are several problems regarding

workers

’ welfare in developing

countries

because of under-appreciated(unjust?) treatment by multinational

companies

. In fact, people in developing

countries

have a relatively low sense of human rights for

workers

. These

companies

are well aware of

this

problem and do not miss the chance to abuse

labor

Change the spelling

labour

show examples

forces who are ignorant of their rights to work appropriately.

As a result

,

employees

are suffering from overworking hours and poor welfare which cannot be acceptable in developed

countries

.

Consequently

,

workers

in developing

countries

cannot receive just treatment for their

labor

Change the spelling

labour

show examples

forces.

For example

, according to the BBC, Apple established a factory in Thailand in 2018. The company hired a number of local

employees

and put them to work for 15-16 hours a day which made some

workers

commit suicide for their excessive workloads. In conclusion, multinational

companies

could be a double-edged sword for developing

countries

.

Thanks

to these

companies

,

employees

in developing

countries

can get more chances to be hired, and

this

will lead these

countries

to economic growth in the long run.

However

, excessive workloads and under-appreciated treatment by multinational enterprises will cause bad effects on these developing

countries

.