Globalisation: IELTS Writing Task 2 question

More and more large international firms are setting up factories and offices in developing countries. I believe that the advantages of this trend outweigh the disadvantages, but only if the governments of these countries regulate the companies effectively.

The potential drawbacks are serious. Some multinational corporations move production abroad mainly to exploit cheap labour, paying very low wages and providing unsafe or exhausting working conditions. Local businesses may find it impossible to compete with a global company that can sell products at lower prices, and a large share of the profits is often sent back to the company's home country rather than being reinvested locally. In addition, where environmental laws are weak or poorly enforced, factories may pollute rivers and air with little fear of punishment, harming the health of nearby communities.

On the other hand, the benefits can transform a developing economy. The most immediate is job creation: a new factory or call centre can provide thousands of people with regular wages, often higher than those available in local agriculture. These workers frequently receive training, and technology transfer allows local engineers and managers to learn skills that they can later use to start their own businesses. Investment from abroad can also lead to improvements in roads, ports and electricity supply, which benefit the whole population. Finally, the taxes paid by these companies give governments more money to spend on schools and hospitals, contributing to wider prosperity.

In conclusion, I believe the arrival of international companies is generally positive for developing countries. However, governments must introduce and enforce firm rules on wages, safety and pollution, so that the benefits are shared fairly and ordinary people are protected from exploitation.