It is true that developed countries are trying to boost the economy of developing countries by opening new offices and factories, while numbers of other people suggest that the governments of developing countries should help in developing local companies so that they can contribute to the economy growth. I completely disagree with the statement of supporting local companies and to support my statement I will be providing a list of reasons in this essay.
On the positive side, if the multinational companies started investing in developing countries then it will be beneficial for developing countries citizens as this companies offers high paid jobs to their employees and they will have more disposable income to spend on the luxurious products, also they can buy their own house which ultimately help them to increase their leaving standards along with that they came above the poverty line, so in this way they can help in growth of economy. Additionally, it will provide various options to consumers. For example, few years before there was only one shoes company which was dominating in India but now there are several different shoes manufacturing companies like Nike, Reebok and many more.
Another important benefit of the multinational companies is that they promote positive values, such as diversity and equality for women as they provide equal opportunity to both sexes. Finally, they will create an environment of nonviolence and international cooperation among countries.
On the negative side, due to this foreign companies local companies are not getting opportunity to show their skills and their products in international market. As they are local companies and do not get invested support because they will earn more profit from international companies. In this case if the government provide financial support to the local businesses then they can also become multinational companies and support the country economy. What is more, developing countries become dependent on other countries.
To conclude, though there are several drawbacks of supporting MNC’s to open companies in developing countries like local companies not opportunity to show their skills, they will become dependent on others, however, there are several benefits of that like increase employment, create environment of peace and harmony, and equal opportunity for women.