Are multinational companies a curse or a blessing in the developing world?

Social Studies

1 answer:

goldfiish [28.3K]2 years ago

6 0

Answer:

Blessing

Explanation:

Multinational companies often created their factories on another country that have cheaper resources and lower labor cost in order to increase their profit.

Many people use this fact as an argument to state that they're a curse for developing countries.

But, they tend to be beneficial in the long run. The cost of labor might be considered 'low' for the multinational companies, but compared to local companies, they tend to be on above average level.

On top of that, the existing of multinational companies will provide opportunities for the locals to learn establishing similar business by their own. This will gradually help local business to increase their quality until eventually they're strong enough to compete in international market.

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