Stateless enterprises have been observed to have been increasing their presence in underdeveloped nations and there are benefits of this recognized progression such as the creation of employment and the meeting of cultures. However, there are also drawbacks to it including the downfall of local businesses and tragedies that may befall the environment and the inhabitants.
Multinational corporations aim to expand their profit by making their businesses available to other countries and one of the benefits they claim to give to residents of the home countries are job opportunities. This became evident in the Philippines where a lot of outsourcing companies proliferated in the country and were able to recruit many Filipinos because of the higher salaries they offer them. Moreover, foreigners such as Indians, Americans, British, and Australians who lead these multinational corporations were able to share their best work practices ingrained in their culture among the local employees and vice versa.
There are, however, disadvantages to multinational enterprises coming over to other nations and one of them is the displacement of local companies. With higher wages being offered by them, workers tend to leave their home country jobs. For this reason, local businesses may go bankrupt owing to a lack of manpower and production rates. In addition, natural resources may be depleted by mining companies that profit from excavating precious stones and metals. Their drilling and excavation processes may also cause disasters such as earthquakes and floods that impinge upon the residents.
In summary, transnational corporate organizations could bring employment to residents and at the same time promote the exchange of cultural practices. For all that, local companies may go bankrupt and the environment may be destroyed affecting the local inhabitants too due to some multinational companies being only profit-oriented.