Creating New Job Opportunities In Host Countries

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ESSAY PLAN 1. Despite of the fact that some people tell about their disadvantages such as increasing profits without contributing the host countries` and as well domestic economy, multinationals are beneficial to the world, because they have started to care about the natural resources and environment in host countries, create new job opportunities in the country they entry, expand technology all over the world and spending more on Research and Development (R&D). 2. Definition of a multinational company A. Three ways of entering a new market 3. Boosting the profits without any contribution to host and home economies A. Selling goods to domestic market B. Lower production costs 4. Caring about environment A. Consumer Awareness B. Minimizing variable costs 5. Creating new job opportunities in home countries A. Lower labor costs B. Establishing new facilities in host countries 6. Expanding new technology around the world and spending more on R&D A. Using Better machines a. Reducing working hours B. Inventing new products to survive

The world is globalizing every day. One of the most important affects of it is because of the fact that there are many multinational companies all around the world. The companies which aim to make businesses throughout the world establish new factories, subsidiaries or at least a small assembly line in different countries especially developing ones. By doing so, they employ the people who live in the host countries due to the fact that they want to decrease production costs because workers in that countries are paid lower wages. Despite of the fact that some people tell about their disadvantages such as increasing profits without contributing the host countries` and as well domestic economy, multinationals are beneficial to the world, because they have started to care about the natural resources and environment in host countries, create new job opportunities in the country they entry, expand technology all over the world and spending more on Research and Development (R&D).
In general sense, a multinational company is an enterprise that makes any kind of business not only in its home country and also in different countries all around the world. (Eldridge, 2010). However, its headquarters is generally located in the home country. “Multinational corporations follow three general procedures when seeking to access new markets: merger with or direct acquisition of existing concerns, sequential market entry, and joint ventures.” (Eldridge, 2010). In order make a merger with an existing organization, bigger companies get profits because of their size against others. Sequential market entry is another business approach that companies desire to penetrate into a new market step by step such as establishing a small factory or assembly line and after some time expanding their product range or facilities. Finally, companies prefer striking a deal in a host country`s enterprise and benefit from its power across the local industrial field. (Eldridge, 2010). This is called joint venture approach.
One of the most kvetched issue about multinationals after entering and advancing in a new market is to boost their profits without any yielding a benefit to the economy of host and home countries. Multinationals would generally prefer to sell the goods, which are manufactured in a different country, to the domestic market. Because of this condition, there is no money flow through the host economy except paying wages of workers. So, this results widening the gap between those countries. In addition, they are not so generous in subscribing into theirs. The reason is that one of the important priorities of them is to reduce production costs. Labor costs establish a remarkable place in variable costs of factories. In order to avoid this situation, they have found their way to enter the foreign markets because labor wages in those ones are really
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