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

Recently, a growing number of multinational

companies

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have been established in developing

countries

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.

Thanks

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to these

companies

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, many

workers

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in developing

countries

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can get more opportunities to get jobs.

However

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,

in contrast

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

employees

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by multinational

companies

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.

To begin

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with, many

workers

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in underdeveloped

countries

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now have the chance to get employed

thanks

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to multinational

companies

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. The reason why these

companies

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have a tendency to settle down in developing

countries

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is that these

countries

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provide relatively cheap

labor

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labour

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costs compared to high-developed

countries

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. For multinational

companies

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

countries

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compared to hiring

employees

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in multinational

companies

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’

countries

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.

Consequently

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, more and more unemployed persons in developing

countries

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are likely to get employed by multinational

companies

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, and

this

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will lead these developing

countries

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to economic growth in the long run.

For instance

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

Thanks

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

On the other hand

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, there are several problems regarding

workers

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’ welfare in developing

countries

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

companies

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. In fact, people in developing

countries

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have a relatively low sense of human rights for

workers

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. These

companies

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are well aware of

this

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problem and do not miss the chance to abuse

labor

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labour

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forces who are ignorant of their rights to work appropriately.

As a result

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,

employees

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

countries

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.

Consequently

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,

workers

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in developing

countries

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cannot receive just treatment for their

labor

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labour

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forces.

For example

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

employees

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

workers

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commit suicide for their excessive workloads. In conclusion, multinational

companies

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could be a double-edged sword for developing

countries

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.

Thanks

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to these

companies

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,

employees

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in developing

countries

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can get more chances to be hired, and

this

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will lead these

countries

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to economic growth in the long run.

However

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

countries

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.