Free Essay: Pros and Cons of Multinational Corporations

The workplace environment always affects the quality of work of an individual. The ideal job is not only defined by the pay slip but by the wholesome working experience. This is why some people prefer to work for multinational corporations and others for small organizations. Multinational organizations have both strengths and weaknesses. These strengths and weaknesses not only affect the employees working there but the countries where they are located as well. In this essay, we will look at some of the Pros and Cons of Multinational Corporations.

Pros of multinational corporations

Multinational organizations contribute to the development of the developing world. They have the resources to open branches in developing countries. In this way they are able to create employment opportunities for thousands all over the world. Creating jobs boils down to improving the overall economic status of the host countries.

Large multinationals have the capacity to contribute to research and development. There are some industries like the energy sector where a lot of research needs to be done to find out the impact of exploration as well as better performance methods. Multinationals unlike small organization have the necessary resource to carry out credible research and find solutions from which smaller organizations all over the world can benefit from. They are able to do this because they make large profits every financial year.

Multinationals ensure minimum standards. There are brands that have built their presence and trust all over the world. For example no matter what part of the world you find Kentucky Fried Chicken (KFC) you will be assured of getting a certain standard. It may not be the best available quality passé but you will be certain of getting a standard you are familiar with. Every consumer wants to have this kind of security of always knowing what to expect and the multinationals can offer them this.

The Cons multinational corporations

Multinationals cut themselves a niche and then enjoy monopoly. They have a tendency to set prices very high for their commodities because of their strong brand presence. Multinationals are focused on making profits at the expense of the consumers.

Multinational corporations present unfair competition in the local market. The small firms can only grow to a certain level but never above the multinationals. Since they have very strong market dominance, the marketing strategies of the small local companies only go so far. Local businessmen have to work very hard to assure their potential customers and the already existing ones that their commodities are just as good.

Many multinational corporations have been found guilty of having little regard for the environment in carrying out their businesses. A lot of environmental degradation in many countries is attributed to the operations of multinational firms. Since they have a lot of money and influence, they are able to pay out the necessary authorities and have legal suits against them thrown out of court.

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References

http://yaleglobal.yale.edu/content/multinational-corporations-pro-or-con

http://www.economicshelp.org/blog/538/economics/multinational-corporations-good-or-bad/