More and more international companies are investing and locating their business in foreign country. What problems will local communities face with and what can be done ?

Many multinational

companies

move to developing countries to reduce labour expenditures.

Consequently

, many employees in native

firms

could face unemployment as their

companies

collapse, and local communities may suffer from ailments

due to

environmental pollution.

However

, these adverse ramifications could be mitigated by giving tax incentives to local

companies

and applying stricter judicial punishments.

To begin

, there are various effects from the industrial manufacturing chain movement to the third world.

Firstly

, international corporations could use more automated production lines, which require less labour and produce higher productivity and better quality products.

Hence

, these ventures occupy higher market shares over local

businesses

, leading to massive layoffs as local enterprises collapse.

For example

, many native

firms

struggle with their cash flow as they record lower revenues and marginal profits compared to the previous year.

Consequently

, native bosses decide to optimize their

businesses

and remove low-performing workers.

Secondly

, the communities surrounding these factories have suffered a variety of health issues since these foreign

firms

started building their factories. Investigations have shown high levels of air pollutants and dust from coal mines and industrial waste treatment. Reports have concluded that foreign

companies

, including Samsung Electronics, violated some environmental regulations, leading to human health impairments in the surrounding society.

Nevertheless

, the following remedies could address these ramifications.

Initially

, governments should protect their native

businesses

by offering special financial incentives.

For instance

, reducing tariffs for local

businesses

could help them compete with large foreign

firms

.

Furthermore

, authorities should enforce stricter financial and legal punishments for the executives of these ventures, requiring them to weigh the advantages and disadvantages of their decisions.

Lastly

, stricter financial penalties should be enacted to deter selfish entrepreneurs, and the funds collected could be used for environmental projects like planting more trees.

To conclude

, massive employee layoffs and deteriorating human health conditions are the most serious consequences of these industrial movements. These ramifications could be alleviated by introducing tax incentives to local

firms

and implementing stricter punishments.