More and more global corporations are setting up their branches in underdeveloped nations. The primary benefit of this phenomenon is economical improvement in the developing countries, whereas bankruptcy of local retails is the main drawback.
International companies with setting up their offices in developing countries can lead them to economic growth. It is due to the fact that, with increasing number of firms in a country administrator are required to hire more staff for resolving their requirements. This not only provides more job opportunities for the local people in the society, but also causes more financial recursions in a country, as managers will employ more members to work, and more products will be constructed in their country. To illustrate, in slum area usually there are not any factory or firm to work there, while by starting new branches of international companies in these districts, a lot of job positions will be created for both skilled and unskilled people.
However, transnational organizations are not always beneficial for developing countries, since launching new offices of a multinational company lead local stores to fail. In other words, with commencing new business of global firms in developing countries, local venders cannot compete with international ones in term of quality and quantity of the goods. Thus, internal businesses usually have to abandon their occupations in favour of international companies. For instance, with starting hyper markets like Ikea around the word, almost all local salesmen failed in their sells, and their sells decrease significantly. So, starting various department of global firms in underdeveloped countries is not a absolute advantage.
In conclusion, launching several branches of international companies in developing nations have some pros and cons, but mostly this issue is efficient for the economy of the country, and disadvantageous for the labours in that country.
More and more global corporations are setting up their branches in underdeveloped nations. The primary benefit of this phenomenon is economical improvement in the
developing
countries
, whereas bankruptcy of
local
retails is the main drawback.
International
companies
with setting up their offices in
developing
countries
can lead them to economic growth. It is due to the fact that, with increasing number of
firms
in a
country
administrator
are required
to hire more staff for resolving their requirements. This not
only
provides more job opportunities for the
local
people
in the society,
but
also
causes more financial recursions in a
country
, as managers will employ more members to work, and more products will
be constructed
in their
country
. To illustrate, in slum area
usually
there are not any factory or
firm
to work there, while by starting new branches of
international
companies
in these districts,
a lot of
job positions will
be created
for both skilled and unskilled
people
.
However
, transnational organizations are not always beneficial for
developing
countries
, since launching new offices of a multinational
company
lead
local
stores to fail.
In other words
, with commencing new business of global
firms
in
developing
countries
,
local
venders
cannot compete with
international
ones in term of quality and quantity of the
goods
.
Thus
, internal businesses
usually
have to
abandon their occupations in
favour
of
international
companies
.
For instance
, with starting hyper markets like
Ikea
around the word, almost all
local
salesmen failed in their sells, and their sells decrease
significantly
.
So
, starting various department of global
firms
in underdeveloped
countries
is not
a
absolute advantage.
In conclusion
, launching several branches of
international
companies
in
developing
nations have
some
pros and cons,
but
mostly
this issue is efficient for the economy of the
country
, and disadvantageous for the
labours
in that
country
.