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

It is irrefutable that in certain developing countries the national economy is certainly unstable. Governments of these nation's come up with an initiative to invite big

companies

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to their place due to a variety of reasons.

This

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trend comes with its own advantages and

disadvantages

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,

however

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,

this

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essay will discuss both perspectives.

Firstly

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, the major striking benefit of

this

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trend is an increase in the employment rate. To

further

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illustrate, MNCs tend to hire people from the same locality, which helps in generating income and opportunities for the unemployed.

This

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further

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stabilizes the national revenue. Another benefit is that local

companies

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tend to

work

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hard and progress more in order to compete with the bigger firms. Take

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for

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,for

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instance, small local

companies

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that can act as clients to the national

companies

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and explore or broaden their scope in the market on the one hand and compete with their counterparts

on the other hand

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. Employees learn new skill sets and experience a different

work

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culture which they can implement in other

companies

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they

work

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for in future. Acknowledging, the benefits of the global firms these, have their own

disadvantages

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on equal par. These, affect the local business firms at a pinnacle.

For example

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, people who

work

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in these

companies

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tend to switch their jobs for a better pay scale and the name ,

eventually

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,eventually

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the host

companies

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will have to rise the salary to sustain their employees and withstand competition which could eventually hinder their functioning and

further

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they run into losses.

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is

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an added burden to the economy.

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, the government has to provide a large amount of space which can be utilized for other activities. To sum up, taking into consideration both the advantages and

disadvantages

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, I affirm that the advantages are far more than

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disadvantages

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the disadvantages

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and the government should take more initiatives to encourage MNCs to set up their

companies

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in order to create more scope for employment and improve the quality of

work

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culture in the country.