In modernized world multinational companies are being popular day by day in developing countries. This essay will discuss both drawbacks and positives of having international companies.
On the one hand, having international companies can decrease local markets’ economy. When in particular country has well known globalized markets it will attract all people which will lead to bankrupt in other smaller markets. It has been demonstrated that when Coca-Cola company arrived to Uzbekistan other local drink companies experienced decline in their annual profit. Furthermore, it is international companies that discourage other young businesses and can lead to business loss in particular country. Without having companies from abroad, country’s small markets will not only survive in business field, but also improve country’s economy making products themselves.
On the other hand, encouraging big companies can offer huge quantity of job opportunities for residents. International companies need a large amount of workers, because their job is complicated and cannot be done with small quantity of workers. It can prevent people from being unemployed and offer them a chance to earn money. However, such companies require high skilled workers, which will force workers to match standards and to be more efficient. High work requirement will encourage people to be skilled and smart, which is also beneficial for country having efficient residents. To conclude, while international companies can lead to decrease in profit in some local companies it can offer great job opportunities for people living there and encourage them to be more efficient.