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

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Multinational corporations are capturing markets in developing countries.
This
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development can lead to positive repercussions,
such
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as higher employment levels and economic growth
,
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while
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taking down small local businesses and market dominance would be a big disadvantage.
To begin
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with, when a global company arrives in a new country, it has to employ workers for manufacturing.
For
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this
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reason, big firms search for a huge number of employees and provide job opportunities with a good level of income for citizens.
Moreover
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, the higher employment and salary rates accelerate the economic growth in those areas.
For instance
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, the arrival of big textile companies
such
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as Nike and Adidas in Vietnam has provided job vacancies for thousands of people;
as a result
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,
this
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increased the GDP level by 15%.
On the other hand
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, the appearance of multinational corporations leads to serious issues with local businesses and products. Because of the high reputations and qualitative goods from international organizations, communities will give their preferences to them rather than buying something from small firms. Worldwide companies will start dominating the market;
further
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, all of the items created by indigenous people will disappear from the economy, liquidating all small enterprises.
As a result
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, the local citizens will not be able to open and develop their businesses
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and experience problems with selling goods
due to
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a huge competition.
For example
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, the coming of large meat industries into Russia forced many indigenous farmers to close their farmlands, since people stopped items buying from them. In conclusion,
although
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multinational industries help governments enhance employment and economic rates, they eliminate locally-based entrepreneurs and products.
Submitted by filwayy on

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Task Response
Your essay addresses the advantages and disadvantages of multinational companies in developing countries, which fulfills the task requirement.
Coherence and Cohesion
Your essay demonstrates a clear introduction and conclusion, which helps give structure to your response.
Lexical Resource
You make use of a range of vocabulary and effectively express your ideas.
Grammatical Range
Although your grammar is generally accurate, there are a few minor errors that could be improved.

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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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