In recent years, global companies are establishing themselves in developing nations. This has some benefits like economic growth and employment opportunities and also comes with drawbacks like over use of natural resources and corruption.
Firstly, one evident benefit of operating corporation in a rising country is economic growth. That is to say, as number of company grows than it results in to pay more tax and also it boosts the market and eventually it will benefits the economy. Similarly, generation of job is also another benefits. This is to say, when company comes they need human resource like hiring people and paying them. As a result, individuals can fulfill their livelihood by doing work. As people are employed it always supports countries’ economy which is advantageous. For example, in Nepal, 20 percent job generation are done by these huge company.
Secondly, the primary disadvantage of running big Corporation is exploitation of natural resources. In other words, industries use naturally available materials for production of various goods. For instance, some sport factory like Cricket Company uses more forest to make products like bad and stumps. Hence, they can over use resources. Which could results in environmental degradation and global warming. Moreover, corruption can also becoming increasingly problem. In other words, the people who operates these company can involve in some illegal activities because they only care about profit for their corporation regardless of their prestige.
To conclude, growth in market and generation of jobs are some benefits and use of resources is release corruption are some disadvantages of having multinational company.