J. Multinational companies have become increasingly common in developing countries. What are the advantages and disadvantages of this method?

Multinational corporations are proliferating in developing nations, yielding both advantages and disadvantages; the advantages are that these corporations contribute to the wealth and competitiveness of the host country; the disadvantages are that they pose a threat to

indigenous

Capitalize word

Indigenous

show examples

small

industries

and that they may exacerbate cultural tensions between different groups. On the one hand, the main advantages for developing

countries

to hold more multinational

companies

are making their own nation richer from their profits and producing a more competitive workforce in the next generation; governments can benefit from a part of the profits of multinational

companies

as taxes and

such

companies

hire local

people

, who are

then

influenced by the effective management of advanced cultures and inspired, leading the next generation.

For instance

, SUZUKI Motors, one of the most competitive vehicle

companies

, has inspired

people

worldwide to make safe, small-sized cars with good fuel efficiency.

On the other hand

, the disadvantages of

this

include the shrinking of local traditional

industries

and disputes

as a consequence

of cultural friction;

that is

, if fancy international

companies

were influential in the country, local

industries

of a similar kind would be eradicated without any countermeasure to compete with

this

, and

such

international

companies

bring many

people

from abroad and often fail to restrict behaviours of nuisance by workers, leading to disputes.

For example

, international schools abroad are something that stands for

this

phenomenon. There are many international schools in developed

countries

for citizens in the middle of capital cities of developing

countries

, whose students cause some trouble with local

people

living there because they are ignorant of local manners,

although

they are not intentional in most cases. In summary, the emergence of multinational corporations in developing nations has both positive and negative effects.

While

these

companies

contribute to the economic growth and competitiveness of the host

countries

, they may

also

threaten the survival of local small

industries

and create cultural tensions.