multinational companies are becoming increasingly common in developing countries.

Multinational companies are becoming increasingly common in developing countries. What are the advantages and disadvantages of this?


Multinational companies are becoming increasingly common in developing countries. What are the advantages and disadvantages of this?
It
is argued
that a number of transnational companies are opening their production plants in poor countries. This approach
helps
the companies to take advantage of the
cheap
labour
although, it may lead to poor quality products which affect their sale.

Undeveloped nations provide
labour
at affordable rates as compare to workers in the developed world. This is to say that there is a huge difference in the currency exchange rates between affluent and poor nations.
In addition
, there is no standard wage setup system in developing counties which provide the opportunity of paying
less
wages and employing more workers to
get
advantage from economies of scale.
For example
, according to the survey by
WorkTech
, the Swiss Medicines had employed ten workers in India for a price of single Australian worker on daily basis.

Overseas manufactured commodities are
often
sub-standard and result in the poor sale.
In other words
, every nation in the world has its
own
requirements for quality assurance and what is acceptable in one country may not be acceptable in others. This difference is a major
risk
when products produced in developing nations
are transferred
to developed countries as they fail to satisfy the customer needs
thus
reduces
sale.
For instance
, in a recent report by Clinical Laboratories, lead and cadmium traces
are found
in Swiss energy tablets, which
are produced
in India. These chemicals
are banned
to be
used
in medicines in Australia whereas Indian authorities have no objection as the percentage is minimum. This report brings the outrageous response from Australians and company lost a major stake of its customers.

In conclusion
, production of
goods
in developing countries provides the benefit of saving on
labour
cost
but
it
also
results in the compromise in quality of these.

6
Total Band
6
Coherence and Cohesion
5
Lexical Resource
6.5
Grammatical Range
6.5
Task Achievement
IELTS Writing Evaluation

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