Nowadays, big foreign companies are invited to do investments in most of the developing countries. Even though the development in economy of those countries can be helped, there might be adverse effects on environment, local businesses and social issues.
According to the Foreign Direct Investment (FDI) to the poor, the developing countries’ economic status will be raised. The advanced technology and methods from the rich will help the quality of exports and by this way, not only the foreign currency and income but also the employment rates will be increased.
On the other hand, the small business can be replaced and threatened by the big companies. The small enterprises cannot compete the marketing strategies and techniques of the large ones, there might become the low demand for local products.
Moreover, most of the developing countries’ policies are weak, especially in environmental regulations and laws, because the government only focus on economic development and give less interest on the issues of land, soil, water quality and effects of air pollution. Therefore, there might be a lack of human-resources to monitor and control pollution from large industrial zones and also, the results of environmental degradation are unimaginable. Furthermore, mostly in rural parts of mega cities, people have to remove their homes because of the implementation of huge industrial zones.
In conclusion, as foreign countries set up businesses in developing lands, they should consider not only for their own sake but also for the social and environmental impacts of the host countries
Nowadays,
big
foreign
companies
are invited
to do investments in most of the
developing
countries
.
Even though
the development in economy of those
countries
can be
helped
, there might be adverse effects on environment, local businesses and social issues.
According to the
Foreign
Direct Investment (FDI) to the poor, the
developing
countries’
economic status will
be raised
. The advanced technology and methods from the rich will
help
the quality of exports and by this way, not
only
the
foreign
currency and income
but
also
the employment rates will
be increased
.
On the other hand
, the
small
business can
be replaced
and threatened by the
big
companies
. The
small
enterprises cannot compete the marketing strategies and techniques of the large ones, there might become the low demand for local products.
Moreover
, most of the
developing
countries’
policies are weak,
especially
in environmental regulations and laws,
because
the
government
only
focus on economic development and give less interest on the issues of land, soil, water quality and effects of air pollution.
Therefore
, there might be a lack of human-resources to monitor and control pollution from large industrial zones and
also
, the results of environmental degradation are unimaginable.
Furthermore
,
mostly
in rural parts of mega cities,
people
have to
remove their homes
because
of the implementation of huge industrial zones.
In conclusion
, as
foreign
countries
set up businesses in
developing
lands, they should consider not
only
for their
own
sake
but
also
for the social and environmental impacts of the host
countries