Multinational companies are becoming increasingly common in developing countries. What are the advantages and disadvantages of this?
International
firms
are gaining more popularity in third-world countries. The prevalent advantages of this
trend are economic as they create more job opportunities in developing nations and invest capital for their operations. At the same time
, 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
is due to
the fact that they employ a large workforce to carry out their operations under standardized conditions. In addition
, these firms
provide an inflow of capital into developing countries to establish their local facilities such
as headquarters, offices, roads, bridges, and transportation. For example
, 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
, the prime disadvantage is working for long hours in such
firms
. This
is because these companies handle customers who work in different time
zones. Hence
, employees have to work in their local time
zone and per client time
zone, which can be several hours apart. Furthermore
, bad impact on the environment is one of the demerits of these corporations. This
is to say generating revenue and profit is the main priority of these firms
. Therefore
, their activities produce toxic wastes and greenhouse gases, which cause environmental pollution. For instance
, many mining enterprises seeking fossil oil in the ocean of Pakistan have devastated the area.
To conclude
, the benefits of multinational corporations include the economic growth of society and the development of better infrastructure. Whereas
, exploitation of the environment and workload are major drawbacks.Submitted by durefishan4455 on
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