In the present epoch, transnational corporations are establishing branches and factories in developing countries . It is assumed that has merits and demerits so this essay will reveal the main advantages and drawbacks.
On one hand, the main reason multinationals establish businesses in poorer countries is because it is cheaper for them to get their goods manufactured there due to comparatively lower salaries . In other words, it is unsustainable for most countries to pay high wages when they can pay someone a fraction of the cost to do the same job. For instance, a worker in China can assemble the units of an iPad or iPhone for approximately one-tenth of what an American would expect to be paid. Hence, this example illustrates that companies resort to manufacturing in these countries to reduce expenditure.
On the other hand, despite this economic benefit, some companies lead their laborers to experience difficult psychological conditions through such hard work. In other words, this means when corporations rely on their workers to achieve a specific target, naturally they will get exhausted but should fulfill the aim therefore, they have worked under such unhealthy circumstances, including 15-hour shifts, and several laborers committed suicide by leaping off the factory roof.
For example, Apple has recently come under scrutiny because of appalling conditions in many of its factories. Hence, what can be said is that such international companies neglect the health case of workers and prioritize profit over people.
In conclusion, after this essay has manifested the above- mentioned points , it can be reiterated that huge global corporations may reap the rewards of low operating costs in developing countries , but they should also keep in mind that they have a responsibility towards their workers.