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

to their place due to a variety of reasons.

This

trend comes with its own advantages and

disadvantages

,

however

,

this

essay will discuss both perspectives.

Firstly

, the major striking benefit of

this

trend is an increase in the employment rate. To

further

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

This

further

stabilizes the national revenue. Another benefit is that local

companies

tend to

work

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

for

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,for

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instance, small local

companies

that can act as clients to the national

companies

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

on the other hand

. Employees learn new skill sets and experience a different

work

culture which they can implement in other

companies

they

work

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

disadvantages

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

For example

, people who

work

in these

companies

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

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

further

they run into losses.

This

is

further

an added burden to the economy.

However

, 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

, I affirm that the advantages are far more than

disadvantages

Correct article usage

the disadvantages

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

companies

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

work

culture in the country.