Multinational Companies Essay – Good or Bad for Economic Growth
Multinational Companies Essay – 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 local companies to contribute to economic growth. To what extent do you agree or disagree?
Multinational Companies Essay
Multinational Companies Essay Sample
Some people believe that developing countries invite Multinational companies for improving the economy of the nation while others are on the view that instead of them, the government should help local companies for their contribution to the economic growth of the nation. It is a highly debatable issue, so let us discuss the advantages and disadvantages of Multinational companies before coming to a conclusion.
Let’s start with the advantages first. One of the main advantages of Multinational companies is employment in large number. MNC provide an inflow of capital into the developing countries, finance a current account deficit which improves the balance of payments, transfers new skills, provide new technology which helps in improving the infrastructure of the country and diversify the economy. Furthermore, it develops the whole area where the Multinational company opens, which helps other local companies.
Multinational companies have both the benefits and drawbacks. One of the greatest example in front of the world is of East India Company. On one hand, the company existed a dynamic profit-making entity and on the other hand existed under the control of the British government. Company-operated and runs their own private armies, utilizing military power and ultimately taking over administrative functions of India. This example forces each developing country to think whether one should invite Multinational companies or not.
To conclude, I believe that Multinational companies are good for the fast economic growth of the nation but nothing is more important than independence. So its time for the countries which have been exploited to start making changes and amend their ways of doing business for the better and the sooner the better. To move forward, Multinational Companies are good but always keep in mind necessary steps for saving nation’s interest.