Multinational companies are spreading tremendously all over the world especially developing countries. While it can has its merits such as helping countries in utilizing labor from different parts of the world to keep consumer costs low and raising the quality standards of products and services, it has its demerits such as pushing local firms out of business and maltreatment of employees and not following regulations and laws. In what follows both advantages and disadvantages of multinational companies will be explained.
On one hand, multinational companies have merits and it develops the host country in different aspects. Specifically, if we focus on how those companies make good use of labor from all the over in poorer countries that require low wages to decrease consumer costs. This will benefit the host country in creating a local market with affordable products which wasn’t the case before the multinational companies. Moreover, it keeps the quality standards stable and adhering the world well-known brands. On the contrary of the situation before the multinational companies where developing countries didn’t have to worry about the international standards since they were unaffordable to the customers compared to the local products so they had no competition and the customers had no choice.
On the other hand, multinational companies have demerits such as dominating the market which can make it challenging to the small businesses to survive. For example, in the UAE there is a very aggressive competition when it comes to grocery items such as fruits and vegetables since it imports products from all over the world with affordable prices so the local items are not attractive to the customer anymore which is hurting the local economy. Adding to this, however it’s expected that as the multinational companies gain their power and dominance in the market, they follow the country’s labor laws and regulations. But, unfortunately that’s not the case when it comes to practice. Their main focus is profit and nothing other than profit so sometimes the rules and regulations won’t be followed if it will hinder their growth or making profit.
In conclusion, after discussing both advantages and disadvantages of multinational companies. It can be considered by host countries to try to benefit from all the goodness of it and avoid all the negative effects of it.
Multinational
companies
are spreading
tremendously
all over the
world
especially
developing
countries
. While it can
has
its merits such as helping
countries
in utilizing labor from
different
parts of the
world
to
keep
consumer costs low and raising the quality standards of
products
and services, it has its demerits such as pushing
local
firms out of business and maltreatment of employees and not following regulations and laws. In what follows both advantages and disadvantages of
multinational
companies
will be
explained
.
On one hand,
multinational
companies
have merits and it develops the host
country
in
different
aspects.
Specifically
, if we focus on how those
companies
make
good
use
of labor from all the over in poorer
countries
that require low wages to decrease consumer costs. This will benefit the host
country
in creating a
local
market with affordable
products
which wasn’t the case
before
the
multinational
companies
.
Moreover
, it
keeps
the quality standards stable and adhering the
world
well-known brands.
On the contrary
of the situation
before
the
multinational
companies
where developing
countries
didn’t
have to
worry about the international standards since they were unaffordable to the customers compared to the
local
products
so
they had no competition and the customers had no choice.
On the other hand
,
multinational
companies
have demerits such as dominating the market which can
make
it challenging to the
small
businesses to survive.
For example
, in the UAE there is a
very
aggressive competition when it
comes
to grocery items such as fruits and vegetables since it imports
products
from all over the
world
with affordable prices
so
the
local
items are not attractive to the customer anymore which is hurting the
local
economy. Adding to this,
however
it’s
expected
that as the
multinational
companies
gain their power and dominance in the market, they follow the
country’s
labor laws and regulations.
But
, unfortunately that’s not the case when it
comes
to practice. Their main focus is profit and nothing other than profit
so
sometimes
the
rules
and regulations won’t
be followed
if it will hinder their growth or making profit.
In conclusion
, after discussing both advantages and disadvantages of
multinational
companies
. It can
be considered
by host
countries
to try to benefit from all the goodness of it and avoid all the
negative
effects of it.