An essay practice for IELTS(1)

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Feb 19, 2017 21:54
Nowadays, an increasing number of people are concerned about the impacts of international companies on local people. However, whether multinational corporations provide locals with more job opportunities or cause them to be unemployed is a controversial issue. My view is that while transactional companies may cause local companies to close down so as to make some local people to loss their jobs, they create more employment opportunities.

Firstly, it is obvious that multinational corporations will need local workforces to initiate their business after investing money . For example, After building some factories in the local place, a great many staff are needed, which results in the need of local labors as the cost is much cheaper, for instance in China. Therefore, locals have more job chances due to the investment of international firms.

Secondly, local governments will have more tax revenue because the investment by multinational companies will likely help improve the local economy, which means employment rate will be improved as governments have much more money and are willing to maintain social security. For example, in Hunan province, local governments have been investing in many fields to create more job vacancies for local residents, after the opening policy has been enforced followed with more foreign investment from transactional firms.

That is not to say multinational corporations have no negative effect on local people. Surely, some local companies might be easy to go bankrupt due to lack of competitiveness compared with transactional firms, causing the job loss of some locals. But this problem can be solved as long as governments provide more subsidies for those local companies, increasing their competitiveness.

To summarize, multinational companies have more positive impact on creating jobs for locals. Meanwhile, local governments should not neglect the strains on local entrepreneurs and should provide financial aid to help them become more competitive. By doing so, local residents can benefit more from multinational corporations.