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

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International
firms
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are gaining more popularity in third-world countries. The prevalent advantages of
this
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trend are economic as they create more job opportunities in developing nations and invest capital for their operations. At the same
time
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, major drawbacks are excessive use of natural resources of the host country and working long hours. The most evident aspect of increasing global corporations in underdeveloped countries is the prosperity of local communities.
This
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is
due to
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the fact that they employ a large workforce to carry out their operations under standardized conditions.
In addition
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, these
firms
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provide an inflow of capital into developing countries to establish their local facilities
such
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as headquarters, offices, roads, bridges, and transportation.
For example
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, the role of Nestle, a beverage industry, cannot be denied in uplifting the GDP of Pakistan because it creates jobs for many natives by opening its branches in different parts of the country every year.
On the other hand
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, the prime disadvantage is working for long hours in
such
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firms
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.
This
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is because these companies handle customers who work in different
time
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zones.
Hence
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, employees have to work in their local
time
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zone and per client
time
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zone, which can be several hours apart.
Furthermore
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, bad impact on the environment is one of the demerits of these corporations.
This
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is to say generating revenue and profit is the main priority of these
firms
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.
Therefore
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, their activities produce toxic wastes and greenhouse gases, which cause environmental pollution.
For instance
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, many mining enterprises seeking fossil oil in the ocean of Pakistan have devastated the area.
To conclude
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, the benefits of multinational corporations include the economic growth of society and the development of better infrastructure.
Whereas
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, exploitation of the environment and workload are major drawbacks.
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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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