multinational

PTE Academic sample essay multinational companies in developing countries pro and cons

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Some developing countries invite large multinational companies to open offices and factories in order to help their economy. However, others feel that foreign companies should be shut out and instead the government should help the local companies to contribute to the economic growth. To what extent do you agree or disagree?

 

It is a highly debatable issue whether multinational companies (MNCs) should be encouraged by the governments of developing countries or whether the local companies should be promoted. I firmly believe that MNCs are good for the economic growth. A number of arguments surround my opinion.

 

There are many advantages of MNCs. To begin with they provide employment that usually pays better than other available opportunities. What is more, they train local labour with more sophisticated techniques which in the long run bring benefits to the host country. They also raise the growth rate of host nation by introducing new investment and new technology. To add to it, they promote efficient production and bring a broader range of products to the widest possible market.

Furthermore, such MNCs promote improvement or development of various supporting industries or complementary industries. For example, if an MNC opens in a place, then many businesses open in the neighborhood, which caters to the workers working in these MNCs. In this way, they stabilize and stimulate local economies, and raise standards of living.

Another important advantage of MNCs is that they induce their local rivals to become more innovative and competitive.  For instance, it is a well-known fact that Indian company Videocon has improved its standard to compete with MNCs such as Samsung and Sony. Finally, these companies promote positive values, such as diversity, and equality for women. They also create an environment of nonviolence and international cooperation.

To conclude, MNCs may have their negative points, but their pros far outweigh their cons. So, they should be promoted by the governments of developing countries.

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2 comments

  1. Please Review:-

    It is indubitable that world has become very small in terms of communication and transportation. With this ease, today numerous companies are operating on global market and many developing countries are inviting multinational companies to operate on their soil. Many people think that local companies cannot flourish with presence of these MNCs and it will be detrimental to the local economy. However, I am inclined to believe that MNCs are good for economic growth. In this essay, I will discuss how MNCs are contributing to making our market varied, competitive and efficient.

    To embark with, MNCs use latest technologies and equipment in their factories which fulfills consumer needs more efficiently with better quality of products. For example, Hindustan Unilever has been operating in India and producing high quality products with very competitive prices. This is leveraging people to choose from the best quality products.

    In addition, Many MNCs has started operating in developing countries on such business which were locally not exist before, thus these MNCs are creating new business opportunities in these countries. To exemplify, there are many developing countries which were not having communication networks. Companies like Google and Facebook are building the communication networks in these countries and creating tie ups with local companies for the basic raw material needs. This is the clear example how global companies are helping the local companies to nourish.

    To recapitulate, after analyzing the above arguments it is evident that MCNs has played an indispensable role not only in producing the best quality of products more efficiently but also helped in nourishing the local companies and enabled more competitive marketplace for the consumers.

  2. It is a highly debatable issue that government should promote the local companies or encourage the multinational companies. Some people believe that it’s good for the economy while some opine that it’s not good for the economy. This essay is going to provide reasons for agreement before reaching to a conclusion.
    There are myriad benefits of it. To begin with the positive side, these companies pay better than the other available opportunities. What is more, they train their employees with more sophisticated techniques and which overall help the business in the long run. Further, they also introduce the new technology and innovation which is also a sign of development and growth of the economy. In addition, they promote efficient production and bring a broader range of products to widest possible market.

    Moreover, these Mnc’s promote improvement which overall helps the ancillary industries. For instance, if a company opens in the city, then other supporting industry in neighbourhood will open which cater to numerous benefits to the Mnc’s. So, in this way local industries can develop and improve stabilize position in the market. Another major advantage is that local rivals get a chance to become more and more innovative and competitive. For example with the introduction of Sony TV brand in India, local companies like Videocon has improved their standards drastically to compete with it. Besides this, these companies promote nonviolence and positive values such as diversity and integrity and equality for women. That also create an atmosphere of international co-operation.

    To sum up with this, Mnc’s’have their negative points to but their positive points are more favourable so Mnc’s should be promoted by the government of developing countries.

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