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

In contemporary society new form of business - Multinational

companies

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have consistently been a topic of interest among the masses. An increasing number of individuals are discovering that establishing multinational

companies

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in developing

countries

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is now the latest trend. Despite recognizing the merits and drawbacks behind the viewpoint, I am inclined to believe that economic growth is the prime benefit,

while

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the excessive use of natural

resources

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is the main drawback. Obviously, one evident benefit of the operation of transitional

companies

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in less developed

countries

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is the prosperity of the local

companies

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.

That is

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to say, multinational

companies

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provide an inflow of capital into developing

countries

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.

This

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investment not only creates job opportunities for people in developing nations

,

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but

also

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helps to build better infrastructure,

such

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as bridges, roads and transportation facilities, for them.

For example

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, the role of Amazon's branch in India in the year 2010 was undeniable because it uplifted the Indian economy so fast, meanwhile increasing GDP and

created so

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creating

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many jobs for locals. The prime disadvantage is that these

companies

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use the natural

resources

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of developing nations recklessly, which affects the environment.

In other words

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, smaller, less developed governments often trade an increase in revenue for access to natural

resources

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.

This

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extraction of raw materials,

such

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as oil, diamond, rubber and fuel, can cause environmental externalities- polluted rivers and loss of natural landscapes.

For instance

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, many Chinese private enterprises have been heavily criticised for using the

resources

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of

countries

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like Thailand and for polluting the environment. In conclusion, following the thorough and nuanced examination of the issue's complex spectrum, it becomes clear that the detrimental attributes - extraction of raw materials, substantially suppress and overshadow the associated benefits - the growth of nations' economies.