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

The presence of multinational
companies
in developing nations is increasing and became a common thing. The advantages of
this
trend are that consumer has many options to choose from
products
available and employment generation.
Whereas
the disadvantage is that it kills local industries in
countries
where they are expanding.which will have a negative impact on the developing country's economy. Multinational
companies
are now targeting developing nations to increase their market share. These
countries
have opened their markets to attract direct investment in their region.
Also
,
countries
have flooded with branded
products
.
for example
, electronic items from
companies
like Samsung, LG, and Philips are now available in India. consumers have a wide choice to select from
products
. Multinational
companies
are generating lots of employment in developing
state
Fix the agreement mistake
states
show examples
.
Moreover
, it destroys the local economy in the long run.
However
, local industries are facing survival challenges because of the prefiltration of multinational
companies
in these
countries
. They have to compete with
companies
. multinational
companies
have superior quality
products
and deep pockets to run marketing campaigns to lure buyers for their
products
. Local industries have few resources to compete with them. To cite an example, Videocon an electronic appliances manufacturer from India is facing tough competition from brands like Samsung , and LG in the electronic appliances segment in India.
To conclude
, multinational
companies
' entry into developing
region
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regions
show examples
should be monitored as they have deep pockets and superior product quality . which can create survival problems for local corporations. these can be detrimental for developing nations as domestic
companies
have to compete with multinational groups .Which have unfair advantages of technological superiority and deep pockets. Multinationals
also
adopt aggressive advertising and marketing strategies.
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Essentional vocabulary list for IELTS Writing 7+

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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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