Most large companies nowadays operate multi-nationally.
To what extent multinational companies have responsibility toward local communities in which they operate?
In recent decades, Globalisation has been bringing many opportunities to myriad of companies, especially corporations, because now they can easily access and operate in other countries. Many people, including me, believe that these multinational companies should have responsibility towards their host countries due to many advantages they get and lot of problems they pose.
That multinational companies mainly operate in developing countries can be highly beneficial to them. First, by taking advantages on the discrepancy in the wages between developing countries and developed ones, large companies can cut down the percentage of their budget for paying worker salary. In their original countries, each employee is often paid several thousands of dollars per month, whereas the same amount of money can pay for ten skillful worker in VietNam. This is extreme cost-effective. Second, since countries like VietNam, Laos have attractive tax rate and easy revenue laws, corporations can have opportunities to get around rules and regulations as they can choose the place to operate. For example, corporations , such as Facebook and Google, often transfer their revenue to subsidiary companies in other countries where they can pay much less taxes. As a result, the main company can save large amount of money.
There are number of detrimental effects which have a lot to do with large companies on the local citizens. In a short term, people have to face with air and water pollution which largely impacts to their health and life in a negative way. For instance, number of centers of factories discharge many tons of toxic chemical and million meters of waste water into the environment every day. This destroys the around ecology and can lead to cancer or other diseases to local people. In a long term, in order for multinational companies to increase their efficiency, the low-technology machines will be replaced by the modern ones, which makes the host countries become landfill sites of old equipments. In fact, If a area is full of garbage and low-tech machines, large companies will leave and also these sites require huge resources to recover.
In conclusion, I fully agree with the idea that multinational companies should pay a price for not only many harmful impacts they make but also lot of benefits which host countries bring to them.
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