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

The multinational type of

companies

is increasing in the developed nations.

While

the advantages of

such

phenomenon are economical as these

companies

create large

number

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numbers

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of jobs and invest significant

capitals

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capital

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for their operations, the effects on the

environment

and the

over exploitation

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over-exploitation

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of natural resources are the disadvantages. The advantages of these

companies

are economical, and one of the benefits is creating job vacancies. Owing to the nature of these

companies

and their high standard, their operations are carried out under certain standards that require

significant

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a significant

the significant

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number of employees.

As a result

, they tend to employ many people from local communities.

In addition

, those Firms usually invest huge capital in order to establish their local presence and facilities

such

as headquarters and accommodation for their staff.

For example

, IBM, a computer manufacturer, invested hugely in China as part of

their

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its

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plan to establish

their

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its

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manufacturing plants there.

On the other hand

, one of the disadvantages of these

companies

are

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is

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their bad effects on the

environment

. For those multinational firms, in most cases, making profit precedence over any other consideration including

the

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apply

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nature and the

environment

. Their activities usually produce enormous

amount

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amounts

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of toxic chemicals and gases that cause global warming.

In addition

, in order to meet their large production capacity, they consume

the

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apply

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natural resources in a sustainable way,

cause

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causing

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irreversible damage to

the

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apply

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nature.

For instance

,

mutlinational

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multinational

mining

companies

seeking marble in the mountains of Italy have severely devastated the area and these highlands.

To conclude

, the benefits of multinational

companies

are economical as they create job vacancies and invest significant liquidity,

whereas

the effects on the

environment

and the exhaustion of natural resources are the disadvantages resulting from

such

companies

.