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

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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

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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.