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

Evidence suggests that nowadays, there are more multinational association working in developing

companies

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.

Although

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there are benefits involved in

this

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trend, the disadvantages are by no means negligible. On the plus side, the benefits of international

companies

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are manifold.

To begin

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with, these

companies

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provide economic opportunities for people living in developing

countries

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.

That is

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, the more multinational

companies

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are established in a

country

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, the more the

country

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is bound to flourish. A good illustration of

this

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is more capital is diverted to these poor

countries

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.

This

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in turn will result in more jobs for the unemployed population.

Moreover

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, international groups bring their technologies to developing

countries

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, so local associations would be benefited as well.

However

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, the negative side cannot be ignored. The most obvious disadvantage is concerned with local businesses. Because international

companies

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have more economic strength, many of them are not capable of competing with their powerful rivals. Take the Russian

companies

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which were really weak after collapsing the Soviet Union as an example. The majority of them failed

as a result

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of multinational

companies

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.

Furthermore

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, many of the

companies

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are run by foreigners who do not have a thorough understanding of the

country

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in which they found their new branch.

Hence

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, the managers may behave in a way that employees find offensive.

This

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may cause conflicts in the workplace. In conclusion, having more multinational associations in a developing

country

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would be beneficial for the local people as it brings economic prosperity. Having said that, they may be harmful to

such

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countries

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since many local businesses cannot continue to work in

this

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competitive market.