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Impact of international businesses Platform on the developing countries

Impact of international businesses in developed countries

In the recent era, the emerging technology has changed everything as now we can communicate with our friends and families who are a thousand miles away in real time though the advance technology. The medical sciences have discovered treatments of diseases which were deadliest in past time. Subsequently, a major impact of emerging technology can be seen in the business world. It is precisely right to say that the business word receives the most prominent impact of technological advancement as everything in the business world has transformed into a digital world.

In the analyses of the impact of technology on the business world, it can be seen that the technology has given way to the business to increase their sale by extending their boundaries of doing business and to do business with enormous pace. In this regards, it can be seen that the technology has enabled many big organizations to more increase their profit by setting their business in the developing or poor countries.

In the name free trade, many multinational companies set their business in Indian, Bangladesh, China, Malaysia, Mexico, Pakistan, Libya, and Nigeria and many other developing countries. The purpose of the free trade corridor is to promote trade among the countries with an aim to improve the economic condition of both countries. In this sense, the international business seems a great idea to improve the overall economy of the world(McWilliams, 2015).

Controversially when we look at the other side of the picture of international business, it shows a very sad picture because the multinational companies that are working in their homeland with all the responsibilities and follow all the rules and regulation, they seems to violate the rules in developing countries by misusing the platform for the international business.

The purpose of this paper is to highlight the wrong use of the term international business so that the concern authorities get motivations from this research and takes actions to make this free trade a mutually beneficial act for the involved nations. Moreover, it is also proposed to communicate to the MNC’s that the rules of the game have changed, now people are becoming aware, and they will only trust on the organizations that are fulfilling their social responsibilities. Subsequently, in research, it is stated that now the corporate social responsibility is moving from optional to mandatory i.e. now only organizations could survive that are fulfilling their corporate social responsibilities.

To support the argument that the international business platform has been exploiting by some giant organizations, the following writing will include some example in which the giant organizations’ unethical and morally ill acts and exploitation of international business platform are exposed(Rob Asghar, 2015).

Wal-Mart is one of the most popular American-based retailers that fulfill all its responsibilities within the country and to work in Wal-Mart is consider a dream job because Wal-Mart gives very attractive salaries and many other bonuses and allowances to their employees. Unfortunately, when this company is reviewed through the lenses of international business, the picture of the company is totally changed.In 2013, in a building name RanaPlaza; thousands of Bangladeshi workers were working in a garment factory. The garment factory was working for the Wal-Mart and giving great profit to the company. Unfortunately, in an incident, the building was collapsed due to the fire caught the building and around 1127 workers were burned and killed, and more than 1500 were injured. In the response of it, Wal-Mart denied to take any responsibility and did not compensate the survivors. Moreover, it was found that monthly salary that was paying to the workers in Bangladesh was average $38 which is five times less than the workers working in garment factories in China and around hundred times less than the workers of Wal-Mart in America(BANJO, 2013).

It is not the only story of MNC’s exploitation of international business platform. In India Kerala, one of the most famous carbonated drink manufacturing company Coca-Cola settled its bottling plant. At the time when the plant was established, the land of Kerala was fertile, and the level of water was high as people do not have to travel to get water. However, no one knows that the conditions will changes because Coca-Cola is a multinational company and it knows its social responsibilities very well. However, unexpectedly, the company’s Bottling plant did not take care any of its social responsibility and they damaged the fertile land and turned it into a barren land as the quantity of the growing crops decreased greatly. On the other hand, the water level decreased considerably as the villagers had to travel miles away to get some fresh water(Singh, 2011).

In another case, one of the most famous spots manufacturing company Nike was found involved in the exploitation of international Business platform. According to a report, it was found that the Nike was manufacturing its goods from Pakistan as Pakistan has good name spots manufacturing. However, many big buyers discontinued their business relations with Nike, as Nike was found involved in Child labor. This is the same Nike that follows all the rules and regulation, but in greed of more profit, Nike did not concern about rules violations(Clark, 2006).

Through this study, it is proposed to communicate that through the international business platform, the capitalist should be controlled to exploit the opportunity and the profit should be divided equally among the MNC’s and the stakeholders of the developing countries. Through this writing, it is aimed to communicate that the international business is no doubt a platform that has enabled the businesses to reach the heights of success. However, on the other hand, the companies that are exploiting this platform should be exposed and penalized accordingly so that the workers will get their right and the position of the developing countries also improve. These organizations should be aware of their corporate social responsibilities within and outside the boundaries of their homeland.


BANJO, S. (2013). Wal-Mart: Many of Tested Bangladesh Plants Had Safety Woes. Retrieved August 8, 2016, from http://www.wsj.com/articles/SB10001424052702303985504579204482930379914

Clark, A. (2006). Nike sacks Pakistani supplier over child labor row. Retrieved August 8, 2016, from https://www.theguardian.com/business/2006/nov/20/2

McWilliams, A. (2015). Corporate Social Responsibilit. John Wiley & Sons, Ltd.

Rob Asghar, R. (2015). How Corporate Social Responsibility Is Moving From Optional To Mandatory. http://www.forbes.com/sites/robasghar/2015/05/07/how-corporate-social-responsibility-is-moving-from-optional-to-mandatory/#6d88bdb5655b.

Singh, J. (2011). India Coca-Cola compensation law is passed in Kerala. Retrieved August 8, 2016, from http://www.bbc.com/news/world-south-asia-12567542

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