In today's world of globalization, a growing number of transnational corporations are being established in a lot of underdeveloped countries. Doubtlessly, it can bring benefit for both enterprises and host countries with permanent jobs and transofrmation of latest technology. But, on the other hand, strong market competition and the extra consumption of natural resources can be one of the main drawbacks in some cases. As multinational companies have been increased in number and appeared in nearly all points of the world, they create a great job opportunities for local people. Moreover, these corporations can have a positive effect on the technological advancement of a country via investing a large capital to bring modern equipment. Due to the aformentioned factors, the economic condition of the country might grow which can lead to the rise in the number of financially well families. As a result of strong competition between international corporations and local companies, the latter might face several hardships. Numerous consumers can choose foreign products because of their better quality and lower price. It can lead to the profit reduction of the local vendors, and in some cases, it cause to the bankruptcy. Apart from this, as establishing the branch companies and manufacturing goods or materials require a vast amount of raw materials require a vast amount of resources, it can serves as one of the main disadvantages. Because several natural resources, for instance, oil, coal, natural gas are limited resources and extra utilization of them by factories can cause numerous inevitable consequences including ecological changes. According to the recent studies, by 2050, a vast number of creatures will extinct as a result of extra using the resources continuously which causes deforestation, desertification and greenhouse effect. Multinational companies undoubtedly have a various positive impact on the development of a state, but at the same time, could bring several serious issues.
In
today
's world of globalization, a growing
number
of transnational corporations are
being established
in
a lot of
underdeveloped
countries
.
Doubtlessly
, it can bring benefit for both enterprises and host
countries
with permanent jobs and
transofrmation
of
latest
technology.
But
,
on the other hand
, strong market competition and the extra consumption of natural resources can be one of the main drawbacks in
some
cases. As multinational
companies
have
been increased
in
number
and appeared in
nearly
all points of the world, they create a great job opportunities for local
people
.
Moreover
, these corporations can have a
positive
effect on the technological advancement of a
country
via investing a large capital to bring modern equipment. Due to the
aformentioned
factors, the economic condition of the
country
might grow which can lead to the rise in the
number
of
financially
well families.
As a result
of strong competition between international corporations and local
companies
, the latter might face several hardships. Numerous consumers can choose foreign products
because
of their better quality and lower price. It can lead to the profit reduction of the local vendors, and in
some
cases, it
cause
to the bankruptcy. Apart from this, as establishing the branch
companies
and manufacturing
goods
or materials require a vast amount of raw materials require a vast amount of resources, it can
serves
as one of the main disadvantages.
Because
several natural resources,
for instance
, oil, coal, natural gas
are limited
resources and extra utilization of them by factories can cause numerous inevitable
consequences including
ecological
changes
. According to the recent studies, by 2050, a vast
number
of creatures will extinct
as a result
of extra using the resources
continuously
which causes deforestation, desertification and greenhouse effect. Multinational
companies
undoubtedly
have a various
positive
impact on the development of a state,
but
at the same time, could bring several serious issues.