Multinational Companies Operating in Underdeveloped Countries: Good or Bad?

Multinational companies (MNCs) are spreading their production facilities and operations throughout many underdeveloped and developing countries. This leads to both positive and negative consequences for all those living in the host countries involved.

Many advocate that multinational companies are detrimental to the communities in which they operate. Much evidence can be found on how large multinationals exploit the workers they hire in underdeveloped countries, by paying them low wages or by simply not adhering to fair labor practices and ethical standards.

However, there are also many instances where multinationals help the communities in which they operate. MNCs often provide a plethora of jobs to areas where there is little opportunity to work. MNCs also tend to transfer technology to their host countries, by teaching certain Western business practices to workers.

It is difficult to say whether the work of MNCs is truly good or bad, as there are so many factors that contribute to their role in underdeveloped and developing countries. Each MNC has the ability to establish their own reputation and way of conducting business affairs in the countries in which they operate. It is up to each individual company to find the right balance between administering a business that results in great profit, and helping the workers and communities that are directly involved and affected by their production practices.

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About Jessica Summers

My name is Jessica Summers. I graduated as valedictorian from Marymount Manhattan College in 2012 with a B.A. in Communications and minors in Journalism and Political Science. During college, I spent a summer abroad studying at Oxford University and also held internships at CNN International, CNBC Business News, and WABC-TV, among other news organizations and media outlets. I am currently a graduate student at New York University’s Business and Economic Reporting program. I am an aspiring broadcast journalist, especially interested in covering the world of business and finance.
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