In recent years, many companies are expanding and are now global. Some people are of the view that these companies have a positive effect on the economy of less developed countries, whereas, others believe that these corporations mainly harm these countries. Although, there have been more job offers in some developing parts of the world owing to the activity of these corporations, however, I believe that they are harmful due to the huge finances on the products of these business, while more important needs are neglected.
On the one hand, the rise in employment opportunities in some less developed nations have been attributed to the activity of large global corporations. These businesses create flight of capital from some wealthy individuals to many poor countries, which help to establish branch offices resulting in jobs for many people, ranging from unskilled labour force to technologists and engineers. For instance, multinational companies such as Total and Shell are the major employer of labour in the Niger delta region of Nigeria. This reveals an important benefit of such corporations.
On the other hand, some people think that these big corporations prevent the citizens of less developed countries from allocating scare resource to urgent needs. Through advertisements and promotions, some people are not able to distinguish their needs from their wants and subsequently, spend huge amount of their income on luxury, decreasing their savings and infrastructure development. More so, the profits of these businesses are not often retained in developing countries. For example, in recent years, companies like Apple have increased the expenditure on electronic devices in many developing parts of the world with no appreciable economical benefits. Therefore, this has deleterious consequences on the economical growth of such countries. I agree with this view.
In conclusion, the activity of huge multinational corporations create employment opportunities for many citizens in developing countries, however, I hold the view that it negatively impair on the economy of these nations due to the increase in spending on the products of these business. Efforts geared towards promoting this view should be encouraged.
In recent years,
many
companies
are expanding and are
now
global.
Some
people
are of the view that these
companies
have a
positive
effect on the economy of less developed
countries
, whereas, others believe that these
corporations
mainly
harm these
countries
. Although, there have been more job offers in
some
developing
parts of the world owing to the activity of these
corporations
,
however
, I believe that they are harmful due to the huge finances on the products of these
business
, while more
important
needs
are neglected
.
On the one hand, the rise in employment opportunities in
some
less developed nations have
been attributed
to the activity of large global
corporations
. These
businesses
create flight of capital from
some
wealthy individuals to
many
poor
countries
, which
help
to establish branch offices resulting in jobs for
many
people
, ranging from unskilled
labour
force to technologists and engineers.
For instance
, multinational
companies
such as Total and Shell are the major employer of
labour
in the Niger delta region of Nigeria. This reveals an
important
benefit of such corporations.
On the other hand
,
some
people
think
that these
big
corporations
prevent
the citizens of less developed
countries
from allocating scare resource to urgent needs. Through advertisements and promotions,
some
people
are not able to distinguish their needs from their wants and
subsequently
, spend huge amount of their income on luxury, decreasing their savings and infrastructure development. More
so
, the profits of these
businesses
are not
often
retained in
developing
countries
.
For example
, in recent years,
companies
like Apple have increased the expenditure on electronic devices in
many
developing
parts of the world with no appreciable
economical
benefits.
Therefore
, this has deleterious consequences on the
economical
growth of such
countries
. I
agree
with this view.
In conclusion
, the activity of huge multinational
corporations
create employment opportunities for
many
citizens in
developing
countries
,
however
, I hold the view that it
negatively
impair on the economy of these nations due to the increase in spending on the products of these
business
. Efforts geared towards promoting this view should
be encouraged
.