There is a controversial issue about the role of international corporations in the development of regional societies. Some politicians say that they play a major role in the growth of areas where they operate, while some economists believe that they bring no benefit to them. In this essay, I will consider both points of view and agree with the idea of their contribution to local societies.
Let us start with the reasons why some politicians state that transnational businesses take obligations for local society where they do business. The first reason is that they provide employment for locals. International companies usually employ people from regional community, so more residents both get a job for a long time with all advantages, including insurances and normal holidays. Another reason is that they participate in social programs. This type of organization, for instance, frequently devote money to various charity campaigns, such as building new schools and providing households with free housing, which improve the quality of life in regions.
However, some economists argue that multinational companies take no responsibilities for the local communities. Firstly, they pay unequal salary. Multinational companies are prone to open branches in developing countries, so that they can recruit people with high competency, but with lower wage expectations. However, this often results in social unrest, as the local staff wants payment equality as in the headquarter. Secondly, they tend to avoid full taxation. They use different illegal schemes, such as bribing governors, to avoid entire taxation, which leads to a great deficiency in the budget of the host country and little development of community.
In conclusion, even though some economists claim that transnational are irresponsible for regional development, I think that they improve the standards of life the local area where they work.
There is a controversial issue about the role of international corporations in the development of regional societies.
Some
politicians say that they play a major role in the growth of areas where they operate, while
some
economists believe that they bring no benefit to them. In this essay, I will consider both points of view and
agree
with the
idea
of their contribution to
local
societies.
Let
us
start
with the reasons why
some
politicians state that transnational businesses take obligations for
local
society where they do business. The
first
reason is that they provide employment for
locals
. International
companies
usually
employ
people
from regional community,
so
more residents both
get
a job for a long time with all advantages, including insurances and normal holidays. Another reason is that they participate in social programs. This type of organization,
for instance
,
frequently
devote money to various charity campaigns, such as building new schools and providing households with free housing, which
improve
the quality of life in regions.
However
,
some
economists argue that multinational
companies
take no responsibilities for the
local
communities.
Firstly
, they pay unequal salary. Multinational
companies
are prone to open branches in
developing countries
,
so
that they can recruit
people
with high competency,
but
with lower wage expectations.
However
, this
often
results in social unrest, as the
local
staff wants payment equality as in the
headquarter
.
Secondly
, they tend to avoid full taxation. They
use
different
illegal schemes, such as bribing governors, to avoid entire taxation, which leads to a great deficiency in the budget of the host country and
little
development of community.
In conclusion
,
even though
some
economists claim that transnational are irresponsible for regional development, I
think
that they
improve
the standards of life the
local
area where they work.