The result of the rapid globalization revolution has transformed the multinational enterprises leading to the positive impacts to all sectors of the country. This essay will discuss both views but personally, I completely agree that global economics brings the developments as a whole.
One of the drawbacks in increasing multinational corporations is it could be harmful to some local communities in losing their jobs, especially those who are unable to catch up with the trend. For instance, some local Reumoq or Tuk Tuk drivers lost their job as they couldn’t adapt to the trend of booking the ride through app such Grab and PassApp. Another common issue arising from the multinationals is it reduces the cost of the product or services being offered to the market thus leading to lower profit margin for the companies or suppliers. As a result, some business owners closed down their operations as they couldn’t afford the operational cost or less revenue.
On the positive side, firstly, the market competitiveness brings about the buyers’ purchasing powers which allow the customer to buy anything such as foods, groceries, household equipment, and other basic needs at a lower cost; with this benefit the country can improve their people’s livelihood. Secondly, the international businesses have transferred significant knowledge and technology skills and expertise from different industries to the people. With the exposure to first-hand experience from the global economics would pave the way for the home country to future and sustainable economic development.
In conclusion, multinational corporations not only bring about the openness of the market and skills but also bring positive changes to the people and country as a whole. The direct investment of the multinational companies will shorten the development path of a country.