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Band 7

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

#companies #countries
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It is becoming more popular in developing nations to see multinational corporations. There are some benefits to
this
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 trend
such
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 as the progress in the economy they create in these countries and the availability of jobs,
however
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, the shutdown of some small local businesses and the lower selling rate of local
products
Use synonyms
 can be its drawbacks. The main advantage of the increasing number of these types of companies is economic progress.
That is
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 to say, if multinational organizations operate in less-developed nations,
this
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 can bring wealth which boosts industries, trade, and other aspects of the economy.
Moreover
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, more jobs will be available for the local people.
That is
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 because more workers and managers are needed to work for these companies which can be a good opportunity for locals to find a job.
For instance
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, after opening a branch of Apple company in Dubai, many local graduates were thrilled by the good news of being accepted to work under
this
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 renowned company.
However
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, one of the main disadvantages of
this
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 trend is the drop in the selling rate of local
products
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.
That is
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 because of the good reputations and qualities of international items, and,
thus
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, citizens might refrain from buying their local
products
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. Another disadvantage is that some small local shops could be closed.
That is
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due to
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 the unfair competition with these huge strong establishments, and
as a result
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, some might be shut down or go bankrupt.
For example
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, many amateur Syrian entrepreneurs, after the harsh competition they had with international textile corporations, were forced to close their fabric factories. In conclusion,
although
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 the advantages of the popularity of multinational organizations in developing countries are economic progress and the improvement in the job market,
nonetheless
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, its downsides are the drop in the average selling of local
products
Use synonyms
 and the closure of some small businesses.
Submitted by gultekinmahmutgazi on

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Topic Vocabulary:
  • Globalization
  • Multinational corporations (MNCs)
  • Foreign direct investment (FDI)
  • Developing economies
  • Infrastructure development
  • Capacity building
  • Cultural diversity
  • Sustainability
  • Corporate social responsibility (CSR)
  • Technological transfer
  • Economic disparity
  • Market saturation
  • Brain drain
  • Indigenous industries
  • Expatriate management
  • Trade imbalance
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