Nowadays, it is becoming more common to see multinational corporations in developing nations. There are two clear beneficial sides of this trend including the progress in the economy of host countries and more job opportunities, however, environmental problems they create as a result of their businesses and possibility of reduction in selling rate of local products could be its drawbacks.
Coming to the advantages first, establishing international business companies leads to the development of economical conditions and creates lots of working places for local people. When multinational companies start their businesses in less developed countries they bring wealth by paying a large amount of taxes and investing some areas of economy such as trade, tourism, and different industries. Furthermore, local citizens of the government can find a job easily from these corporations because they need more workers and other talented candidates to manage and run their businesses. For example, the American company McDonald’s opened tons of branches in other countries and created lots of job availabilities.
There are also some disadvantages which are environmental issues and the possibility of break of local entrepreneurs. That is because of good quality of internationally produced items, most local dwellers may prefer them and this will leads to the drop in the proportion of local products in domestic markets. Another disadvantage is that these business companies could harm the nature because of their dangerous activities and factories. For instance, in our country, lots of big Korean multinational companies established their branches decades ago and at present, they are putting harm in nature regularly.
In conclusion, through establishing multinational business corporations, countries can achieve economical growth and more job opportunities. Besides these, spreading this kind of companies have some drawbacks including the lower selling rate of locally produced items and possible environmental problems.