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

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The multinational type of
companies
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is increasing in the developed nations.
While
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the advantages of
such
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phenomenon are economical as these
companies
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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
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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
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are economical, and one of the benefits is creating job vacancies. Owing to the nature of these
companies
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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
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, they tend to employ many people from local communities.
In addition
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, those Firms usually invest huge capital in order to establish their local presence and facilities
such
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as headquarters and accommodation for their staff.
For example
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, 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
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, one of the disadvantages of these
companies
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are
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is
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their bad effects on the
environment
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. 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
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. 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
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, 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
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,
mutlinational
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multinational
mining
companies
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seeking marble in the mountains of Italy have severely devastated the area and these highlands.
To conclude
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, the benefits of multinational
companies
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are economical as they create job vacancies and invest significant liquidity,
whereas
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the effects on the
environment
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and the exhaustion of natural resources are the disadvantages resulting from
such
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companies
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.
Submitted by Melroy  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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