In recent times, international establishments have expanded their presence in the developing world. This essay suggests that increased regional employment is a major benefit of this development, along with the implementation of global standards in important industries. This essay also argues that exhaustion of vital resources of the country and an increase in local competition are the main drawbacks.
First and foremost, when global businesses assume operation, they follow high standards set by international bodies and organizations. Furthermore, this development leads to an increase in demand for the product, resulting in higher prices and increased profit. This profit is passed down to the regional workers operating in the company. Another great advantage is that many job opportunities are created for both experts and low-skilled workers, which usually offer higher salaries. For example, when a well-known fizzy drink company inaugurated a factory in Vietnam, more than three thousand jobs were created, and the domestic economy soon experienced a major boom.
However, natural resources of developing nations are often exploited by these establishments due to weak government policies and corruption. Moreover, depletion of these vital assets pushes the country up against the ropes and causes major recessions for the population. Another important disadvantage is that domestic companies face a lot of competition as they have budget restraints, and they often cannot afford advertisements for their products. This struggle forces most local businesses to shut down. For example, many amateur Syrian entrepreneurs, after the harsh competition they had with international textile corporations, were forced to close their fabric factories.
To conclude, the expansion of international establishments in developing countries has led to increased local employment and the adoption of global standards in key industries, but it has also resulted in the depletion of vital resources and more local competition.