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

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In today's globalized world, many businesses have expanded their international consumer market,
where
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which
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located
as
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across
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crossing large ocean.
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requires
the
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a
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larger
manufacture
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manufacturing
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scale, so more
multinational
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multinationals
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relocate their
factories
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to developing countries to take advantage of lower costs. Despite minor ramifications
such
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as detrimental effects on the environment and local health issues,
this
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process
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considers
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is considered
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as
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a
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positive step for both sides. On the one hand,
this
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process
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brings benefits for native persons in developing countries and multinational firms. The primary reason
promoting
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for promoting
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this
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transition wave is gaining financial
incentive
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incentives
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, which stems from
minimize
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minimising
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assemble
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assembly
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cost
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costs
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and tax incentives in
special
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the special
a special
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offer
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offers
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.
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can
be explain
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be explained
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that developing
nation
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nations
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own
large
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a large
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young workforce
while
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this
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nation
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nation's
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labour
cost
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costs
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are lower than
average
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the average
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price and
couple
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coupled
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with special tax incentives
as well as
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favour policies to promote foreign direct investment cashflow. In Vietnam, where was chosen to build
factories
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by
Samsung
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Industries, which ultimately resulted in the proliferation of speeding urbanization as farmers
abandon
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abandoned
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traditional
job
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jobs
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as
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and
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move
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moved
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to
factories
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with better stable
paycheck
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paychecks
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and adequate health insurance. Indeed, the financial statement of
Samsung
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Industries
were
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apply
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reflected
this
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monetary
acquired
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acquisition
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as operating
cost
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costs
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was
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apply
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decreased sharply in comparison between before and after moving to developing countries.
On the other hand
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,
this
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process
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may not pose imminent drawbacks, but in the long
term
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,term
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it will
make
Verb problem
have
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negative effects on
environment
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the environment
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and chronic health diseases.
This
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negative impact stems from burning fossil fuels during manufacturing processes, which release directly into
atmosphere
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the atmosphere
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without any treatment effects on
air
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the air
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surrounding
condition
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conditions
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. The consequence of
this
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irresponsible action
create
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creates
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many
sub consequences
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sub-consequences
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for native persons and employees as inhale in
pollution
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polluted
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atmosphere with
high density
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high-density
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particulate dust. Take,
Samsung
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employees as an example, which
underline
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underlines
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how much impact was created as
Samsung
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operators have to compensate
to
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for
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reduced lung function
in
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apply
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after failure in legal court.
Although
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, creating some minor drawbacks in
this
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global
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factories
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factory
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transit
process
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,
but
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apply
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Linking Words
this
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these
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can be addressed these conundrums holistically by implication
higher
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of higher
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and stricter
environment
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environmental
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standard
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standards
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and
also
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narrowing financial punishment in order to break law action. In conclusion,
this
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process
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not only
bring
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brings
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improve native living standard but
also
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increase surplus profit for
multinational
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a multinational
the multinational
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corporation, despite minor drawbacks including reduced lung function and
high density
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high-density
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toxic gases in low atmosphere condition.
This
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transit
still
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is still
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regarded as
overall
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progress since these problems can potentially resolved holistically.
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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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