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

.

Although

there are benefits involved in

this

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

companies

are manifold.

To begin

with, these

companies

provide economic opportunities for people living in developing

countries

.

That is

, the more multinational

companies

are established in a

country

, the more the

country

is bound to flourish. A good illustration of

this

is more capital is diverted to these poor

countries

.

This

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

Moreover

, international groups bring their technologies to developing

countries

, so local associations would be benefited as well.

However

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

companies

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

companies

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

as a result

of multinational

companies

.

Furthermore

, many of the

companies

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

country

in which they found their new branch.

Hence

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

This

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

country

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

such

countries

since many local businesses cannot continue to work in

this

competitive market.