It is ostensible that in the era of globalization, inviting multinational companies to set up offices and factories has become a common and unprecedented practice among developing nations nowadays. Though, it is a highly debatable whether these international companies or whether the local companies should be promoted by the governments of developing countries. I deem that MNCs are good for the overall health of economy hence should be promoted. Also, the governments need to make local companies competent enough to survive in the cut-throat competition. I would like to explicate it at length in the paragraphs to come. . To begin, they provide employment to local people which help in addressing the problem of unemployment in the host country. Also, they usually pay better remunerations than other available opportunities. Apart from that, they train local labour with more sophisticated techniques which in the long run bring benefits to the host country. Moreover, they assist in boosting the growth rate of host nation by introducing new technology and investment. In addition to it, they promote production and bring a variety of products to the market. Furthermore, such MNCs encourage the growth of various supporting industries. For example, if an MNC opens in a place, then many businesses open in the neighbourhood, which cater to the workers working in these MNCs. In this way, they stabilize and stimulate local economies, and lift the standards of living.
Another important advantage of MNCs is that they induce their local rivals to become more innovative and competitive. Taking an example, it is a well known fact that Indian company Videocon has improved its standard to compete with MNCs such as Samsung and Sony. Last but not the least, these companies develop positive values for women such as diversity, and equality. Women are given equal opportunities in these companies without any prejudice or being biased. However, MNCs do have a downside. For instance, local small scale industries might not be able to compete with these multinationals as they have limited resources. Therefore, the govt. should support them so that they can rub shoulders with these MNCs.
Conclusion, To put it in a nutshell, I pen down saying that MNCs are largely beneficial for the growth of under developing nations.
They may have some drawbacks; however that should not stop us from appreciating and admiring their countless benefits. They should be promoted by the governments of developing countries as they might put much needed impetus in the otherwise dying economy.
It is ostensible that in the era of globalization, inviting multinational
companies
to set up offices and factories has become a common and unprecedented practice among
developing
nations nowadays. Though, it is a
highly
debatable whether these international
companies
or whether the
local
companies
should
be promoted
by the
governments
of
developing
countries
. I deem that
MNCs
are
good
for the
overall
health of economy
hence
should
be promoted
.
Also
, the
governments
need to
make
local
companies
competent
enough
to survive in the
cut
-throat competition. I would like to explicate it at length in the paragraphs to
come
.
.
To
begin
, they provide employment to
local
people
which
help
in addressing the problem of unemployment in the host
country
.
Also
, they
usually
pay better remunerations than other available opportunities. Apart from that, they train
local
labour
with more sophisticated techniques which in the long run bring benefits to the host
country
.
Moreover
, they assist in boosting the growth rate of host nation by introducing new technology and investment.
In addition
to it, they promote production and bring a variety of products to the market.
Furthermore
, such
MNCs
encourage the growth of various supporting industries.
For example
, if an
MNC
opens in a place, then
many
businesses open in the
neighbourhood
, which cater to the workers working in these
MNCs
. In this way, they stabilize and stimulate
local
economies, and lift the standards of living.
Another
important
advantage of
MNCs
is that they induce their
local
rivals to become more innovative and competitive. Taking an example, it is a well known fact that Indian
company
Videocon
has
improved
its standard to compete with
MNCs
such as Samsung and Sony. Last
but
not the least, these
companies
develop
positive
values for women such as diversity, and equality. Women are
given
equal opportunities in these
companies
without any prejudice or
being biased
.
However
,
MNCs
do have a downside.
For instance
,
local
small
scale industries might not be able to compete with these multinationals as they have limited resources.
Therefore
, the govt. should support them
so
that they can rub shoulders with these
MNCs
.
Conclusion, To put it in a nutshell, I pen down saying that
MNCs
are
largely
beneficial for the growth of under
developing
nations.
They may have
some
drawbacks;
however
that should not
stop
us from appreciating and admiring their countless benefits. They should
be promoted
by the
governments
of
developing
countries
as they might put
much needed
impetus in the
otherwise
dying economy.