Recent years saw the establishment of several multinational organisations in a plethora of developing nations. There are a lot of benefits as well drawbacks of this development.
The growth of multinational companies in developing countries has several advantages. Multinational institutions bring a large number of jobs with them which help the unemployed youth of the developing nation. By getting an opportunity to work at these corporations, the people not only develop their skills but also become rich and prosperous in their lives. For example, multinational organisations like Google and Microsoft employ thousands of individuals in India and give them the best salary in the market. Another advantage brought by these multinational corporations is that of the infrastructure development. These companies construct huge towers and buildings within the nation which not only develops the nation but also increases the country’s image in the front of the world. For example, in Mumbai, several multinational corporations like Capgemini, Accenture, etc have made their huge offices for their employees to work.
Multinational companies do also bring a lot of issues with them. The main goal of several international companies is to make huge profits, and to achieve the same they are ready to fall at any level. These institutions break several laws of the nation where they set up their branches in order to maximize their earnings. For example, the chemical supplier Union Carbide brought very harmful illegal chemicals to the country India which led to the Bhopal gas tragedy and killed over millions of people. Another major disadvantage of these international corporations is that they some times over work their employees, and if the employee fails to do so, these companies fire them without at prior notice. For example, with the recent recession occurring in the software industry, several engineers are laid off without any former notice by their international employer.
In conclusion, the rise of multinational corporations in developing countries has several pros and cons. These international companies offer several job opportunities and develop a lot of infrastructure within the developing nation, but at the same time, they do break a lot of laws and sometimes treat the employees unfairly.