Spread of multinational companies due to globalization is positive or negative?
MNCs are spreading their production facilities and operations throughout the underdeveloped and developing countries and undoubtedly this is the direct effect of globalization.It does have some positive consequences but the drawbacks are not too little to ignore.
There are several reasons why many advocate that MNC are detrimental to the communities to which they operate.The most important one is how MNC exploit the workers by paying them low wages.Another point is how safety standard is being ignored by MNC by simply not adhering to fair labor practices and ethical standard.One good illustration is the recent fatal factory collapse accident that took place in a Bd which killed more than 1000 people would have been avoided if the safety issue was strictly maintained by MNCs.
However,there are also many instances MNCs help to raise the standard of living and participate in improving economy of the host country. More often they provide plethora of jobs where there is little opportunity to work and thus inturn increase the per capita income and as a whole national economic upward movement.For example,a lot of people have become employed in Cambodia as a result of stablishment of several garment factory by MNCs.
In conclusion,it is difficult to say whether the spread of MNC is truly good or bad,as there are so many factors that contribute to their role in developing and underdeveloped countries.
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