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

Recent human advancements

resulted

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resulted in

resulted from

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many changes in business and commerce worldwide. Nowadays, multinationals have been increasing

its

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their

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presence globally including countries in development as potential markets.

This

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progress has advantages for the progress of communities as

benefit

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benefits

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countries'

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economy

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economies

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and

create

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creates

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new jobs, but there are

also

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some

disavantages

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disadvantages

because it can not only negatively impact small

business

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businesses

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but

also

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creates

economical

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economic

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dependence on big

companies

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. Multinational

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companies

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company's

companies'

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expansion is

undoubtely

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undoubtedly

beneficial to countries' development. Nowadays, with the advance of globalization, products and services from global brands like Prada, Adidas, Apple and McDonalds are more available for those who want to consume them. Another

posite

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positive

aspect is that having big

companies

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present in different communities creates new job opportunities.

Furthermore

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,

this

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positive

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is positive

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for the country’s

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economy

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economic

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growth. In Brazil,

for instance

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, Ford announced that they were establishing three new factories in different states during the

2000's

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2000s

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. The establishment of the global brand not only generated thousands of jobs

,

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apply

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but

also

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contributed to a

sunbstantial

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substantial

increase in car sales that contributed to

a

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apply

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significant

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economy

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economic

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growth.

Nevertheless

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, global

companies

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' presence is not totally positive. Big brands,

for example

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, usually invest a large amount of money in marketing with the intention to dominate the market.

As a result

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, people prioritize their stores when shopping

goods

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for goods

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, which negatively impacts local establishments. With sales

decline

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declining

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and

less

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fewer

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resources to compete with big

companies

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, many local businesses end up closing down.

Besides

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that, there are realistic risks if multinationals decide to cease operations in the country. One of the risks is that an act like

this

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would affect the community drastically with the sudden job loss,

thus

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families would be

in

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under

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financial pressure.

As a result

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, the country’s financial system would be negatively impacted. In conclusion,

although

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multinational enterprises contribute to the

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economy

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economic

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growth and create job opportunities

it

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they

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can

also

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negatively affect local corporations and create a dependence that can impact communities if they close operations.