Multinational companies are becoming increasingly common in developing countries.

It that a number of transnational companies are opening their production plants in poor countries. This approach the companies to take advantage of the although, it may lead to poor quality products which affect their sale.

Undeveloped nations provide 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. , there is no standard wage setup system in developing counties which provide the opportunity of paying wages and employing more workers to advantage from economies of scale. , according to the survey by , the Swiss Medicines had employed ten workers in India for a price of single Australian worker on daily basis.

Overseas manufactured commodities are sub-standard and result in the poor sale. , every nation in the world has its requirements for quality assurance and what is acceptable in one country may not be acceptable in others. This difference is a major when products produced in developing nations to developed countries as they fail to satisfy the customer needs sale. , in a recent report by Clinical Laboratories, lead and cadmium traces in Swiss energy tablets, which in India. These chemicals to be 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.

, production of in developing countries provides the benefit of saving on cost it results in the compromise in quality of these.