It is true that many global companies are setting up their offices and factories in under developed nations. This essay will suggest that increased employment opportunities is the primary benefit for the local population, while disruption in the local market is the main drawback.
The main advantage of the rise in multinational companies is that it increases the availability of jobs in the market. Major corporations have set up big offices and factories in emerging markets for their products and services, due to which they require a large number of staff for various jobs. For example, Apple recently opened a new factory in the small town of Bihar, where the employment level is very low, and they have provided jobs to 2000 people in that area.
Despite this economic benefit, multinationals are not quite welcomed in the local market, because they cause market disruptions. With high manpower and logistical resources, multinationals can make a variety of products quickly, and local vendors cannot compete with the price, quantity and quality of their products. For instance, when Ikea launched its first store in Hyderabad this year, a lot of furniture stores in the city had to close down because buyers preferred to do all their purchases under one roof instead of visiting different local sellers. Thus, local shops are losing out on business, and eventually closing down.
In conclusion, multinationals provide increased employment opportunities to people, but at the same time affect local vendors by forcing them out of business with their high production output and low price margins. It is recommended that the government passes laws and legislations to make sure that local businesses can survive and thrive in this competing market as well.
It is true that
many
global
companies
are setting up their offices and factories in under developed nations. This essay will suggest that increased employment opportunities is the primary benefit for the
local
population, while disruption in the
local
market
is the main drawback.
The main advantage of the rise in
multinational
companies
is that it increases the availability of jobs in the
market
. Major corporations have set up
big
offices and factories in emerging markets for their products and services, due to which they require
a large number of
staff for various jobs.
For example
, Apple recently opened a new factory in the
small
town of Bihar, where the employment level is
very
low, and they have provided jobs to 2000
people
in that area.
Despite this economic benefit,
multinationals
are not quite welcomed in the
local
market
,
because
they cause
market
disruptions. With high manpower and logistical resources,
multinationals
can
make
a variety of products
quickly
, and
local
vendors cannot compete with the price, quantity and quality of their products.
For instance
, when
Ikea
launched its
first
store in Hyderabad this year,
a lot of
furniture stores in the city had to close down
because
buyers preferred to do all their
purchases
under one roof
instead
of visiting
different
local
sellers.
Thus
,
local
shops are losing out on business, and
eventually
closing down.
In conclusion
,
multinationals
provide increased employment opportunities to
people
,
but
at the same time affect
local
vendors by forcing them out of business with their high production output and low price margins. It
is recommended
that the
government
passes laws and
legislations
to
make
sure that
local
businesses can survive and thrive in this competing
market
as well
.