Several countries allows foreign corporations to operate in their country, which helps them increase their foreign investments and employment opportunities for their local population.Thus, it is regarded as two way benefit approach in which the companies’s parent country also gets the benefit of expanding the business and increasing their consumer base. However, most people think that it increases the competition in the target countries, which would impact their local businesses. Thus, disrupting the economic growth and increasing dependency of these countries on foreign products.
This essay will discuss both merits and demerits, along with my opinion. To begin with, increase in investment from foreign companies leads to better infrastructural developement and employment opportunities, which is essential for under developed and developing countries, which are often gripped with these issues. For instance, advent of multinational corporations have helped the increase in per capita income of such nations, they often find it difficult to generate quality jobs in market.
However, most people think that government should promote the local businesses, because with the advent of multinational corporation these businesses face stiff competition and most of them are not able to survive in long term. In addition of this, the developing and small island countries are mostly dependent on large corporations of developed nations. For example, small countries like Nepal and Maldives are dependent on western companies and their products. This leads to unequal diplomatic standing and could influence the local politics of the country.
In conclusion, I believe that there should be integration in both approaches, in which there should be a set limit in foreign investment and infrastructural setup a country allows from foreign nations, so that the local businesses are not hindered by excessive influence of these organisations.