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

The increasing
number
of multinational
companies
in developing countries brings benefits
as well as
drawbacks. There are some benefits of
this
trend
such
as the increase of foreign domestic
investments
and job availability in the country.
However
,
this
trend could
also
result in the lack of development of small and medium local enterprises and a decrease in the sales of local products. On the one hand, the main advantage of the increase in international
companies
is the addition of new
investments
.
As a result
, developing countries can use their
investments
to fund essential services,
such
as health and education.
Moreover
, international
companies
will open many high-quality job opportunities to the population.
This
will decrease the unemployment rate and push more economic growth.
For example
, Vietnam's economy has started to grow and its unemployment rate is declining after
opened
Wrong verb form
opening
show examples
itself to more foreign
companies
, especially the manufacturing industry.
On the other hand
, the growing
number
of overseas
companies
could hinder emerging local enterprises.
This
is
due to
the fact that many small and medium local
companies
have small
investments
and are not able to compete with bigger foreign
companies
.
That is
to say, the foreign
companies
will take their market and make them more difficult to compete.
In addition
, because the market is filled by foreign
companies
with high-quality goods, it is
also
possible to see a decrease in local product purchases.
This
is because many people believe it is better to buy foreign products than local goods.
For example
, nowadays many textile businesses in Indonesia are closed
due to
their inability to compete with clothes from China and Vietnam that are more preferred by Indonesians.
To conclude
, the growing
number
of multinational
companies
in developing countries brings advantages and disadvantages. The advantages include a higher
number
of foreign
investments
and an increase in job availability
while
the disadvantages include the unequal competition for small and medium local businesses and a decline in local products' sales.
Submitted by aribawadzaki on

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task achievement
You have provided a complete response to the task by addressing both the advantages and disadvantages of multinational companies in developing countries. However, ensure that your ideas are expressed as clearly as possible without losing complexity. Revising some sentences for clarity could help.
task achievement
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coherence cohesion
Your essay has a strong logical structure with a clear introduction, body paragraphs, and a conclusion. However, make sure to use a wide range of linking words and phrases to maintain coherence and cohesion at the highest level.
coherence cohesion
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coherence cohesion
You have a clear introduction and conclusion that frame your essay effectively.
task achievement
Your main points are well-supported with relevant examples, adding depth to your arguments.
coherence cohesion
The logical structure of your essay is very good, making it easy to follow your arguments and ideas.

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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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