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Multinational companies are becoming increasingly common in



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Multinational companies are becoming increasingly common in 
developing countries. What are the advantages and disadvantages of 
this?
In recent years, the operation of big corporations is ubiquitous in 
developing nations. The essay will first suggest that economic growth is 
the prime benefit, while the excessive use of emergent nations’ natural 
resources is the main drawback. 
One evident benefit of the operation of transitional companies in less 
developed countries is the prosperity of the local economy. That is to say, 
multination companies provide an inflow of capital into developing 
countries. This investment not only creates job opportunities for the 
people in developing nations, but it also helps to build better 
infrastructure, such as bridges, roads, and transportation facilities, for 
them. For example, the role of Foreign Direct Investment in the year 2010 
was undeniable because it uplifted the Indian economy so fast and 
increased GDP and created so many jobs for locals.
The prime disadvantage is that these companies use the natural resources 
of developing nations recklessly, which affects the environment. In other 
words, Smaller, less developed governments often trade an increase in 
revenue for access to natural resources. This extraction of raw materials, 
such as oil, diamond, rubber and fuel, can cause environmental 
externalities- polluted rivers and loss of natural landscape. For instance
many Chinese private enterprises have been heavily criticised for using the 
resources of countries like Vietnam, Thailand and the Philippine and for 
polluting the environment. 


In conclusion, huge global companies benefit less developed nation 
economically is the prime advantage of this, and the extraction of raw 
materials for the sake of profit is the main disadvantage. 

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