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

With ongoing development all around the globe, developing nations have started to focus on improving corporate sectors with the help of multinational companies.

This

essay will discuss both

pros

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the pros

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and cons of the improved industrial sector. To commence, I would

spare

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shed

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some light on the advantages of firms investing their money in third-world countries.

Firstly

, it helps the government to provide more job opportunities to their people and help them grow in their professional fields.

Moreover

, it reduces the tax duty involved in exporting products over international borders.

For instance

, the current agreement between the Indian government and the Tesla group of setting up a manufacturing unit of Tesla in South India will reduce the price of the electrical cars by 45% to what it was when the cars were imported from the US borders.

In addition

,

according to

, officials it will provide new 60,000 job offers for the local communities.

However

, like, a coin it has another side of disadvantages.

To begin

, some companies require a lot of land for their expansion which affects the farmers directly leading them to go completely out of business.

For example

, a survey has indicated that the medical industry requires a huge plot of ground to establish their testing units, which has affected Indian food manufacturers drastically pushing them out of the market.

To conclude

, it is always beneficial for a country to have Multinational companies invest in them, as it gives more growth opportunities for the local people, but the officials should be mindful enough to create laws which will protect the existing business.