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A Multinational corporation (MNC) is a company that has a facility or facilities in one or more countries outside of its home country. One example of a MNC is The Coca-Cola Company, with this company selling products in over 200 countries and territories. Another example of a MNC is Nike, Inc., with Nike selling products in 170 countries along with having 30,000 worldwide employees. While their plenty of benefits rewarding the countries that deal with MNCs, there are also a lot of downsides that befall developing countries, which is what I will be going over.

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One downside that MNCs bring upon the countries that deal with is child labour. Child labour is the exploitation of children of poor families through any form of work which deprives them of a normal childhood by forcing them to abandon schooling in order to work. This increases the illiteracy rate and continues the increase the gap between the less educated and more educated families. Approximately 250 million children between ages 5 and 14 are forced into working MNC owned factories. One MNC that employs children is the fashion company, H&M, with it being reported that H&M factories located in Myanmar have employed 14 year old workers in order to make their clothing

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Another downside of MNCs for developing countries is that they are poorly paid in comparison to their U.S. counterparts. These MNCs are making huge profit margins while underpaying their workers. In 1997, an investigative report was conducted by Dara O'Rourke, who discovered that the average night shift employee at a Nike plant located in Vietnam worked an average of 10 and a half hours a day, 6 days a week for a monthly salary of $40 a month. What the average working in a developing country makes in a month is the equivalent of what their U.S. counterparts make in one day.

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One more downside that MNCs bring upon developing countries are poor working conditions. Because MNCs are more concerned on the profit to be made, they neglect providing the employees protection and the same adequate working conditions they would give to their North American counterparts. These poor working condition can include long hours (In the worst cases, some workers are forced to work up to 72 hours with no sleep), no breaks, deplorable environment and exposing workers to chemical without proper safety gear. For example, in 1993, Dhaka, Bangladesh, a building collapsed, killing approximately over 1100 people. The building contained clothing factories, a bank, apartments and several shops. Cracks were discovered in the shops and bank on the lower floors which where then closed. Garment workers were then forced back into the building the following day which then collapsed during morning rush hour. The MNC determined that making money was more important that the safety of their employees.

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In conclusion, While MNCs can bring about positive impacts on developing countries, one cannot ignore the negative impacts that could entail, which some could liken to modern day slavery. However, there are many companies that are dedicated to exposing MNCs which exploit the developing countries that they operate it. One such company is the Clean Clothes Campaign (cleanclothes.org), whose sole goal is to shed light on the issue and improve conditions in the global garment industry.