Write about the following essay topic. Complete the task in 20 minutes.
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?
Some experts are of the view that multinational companies promote growth and trade in the hosting country. There are some who feel that the government should not promote foreign companies and instead help the local companies. This essay disagrees with this view to a great extent because the upsides are the influx of foreign capital and heavy investment that multinational companies bring into developing countries.
In general, multinational companies operate in several countries. In the recent time, many developed countries refuse to part their GDP with developing countries and assist them. And here comes large multinational companies that bridge this gap of foreign investment requirement in the developing economies. The influx of foreign currency by the large multinational companies create an environment of jobs and opportunities for the developing countries.
Another important reason to support multinational companies is that they bring in latest and advanced technology to the developing countries. They also upgrade the working class with the required skills and technical knowledge to operate new equipment and machinery. It also enables the working section of the developing country to set up new ventures requiring high sophisticated technology. Multinational Corporations could invest hugely that will ultimately boost infrastructure and industrial growth. For example, many American companies are expanding and investing billions in foreign direct investment in China.
In view of above, I can conclude that like domestic investment, large multinational companies through foreign investment help revive the economy. They have a direct benefit on the income and employment in a country.