Multi-national companies use developing countries as their base ground for manufacturers or we can say for labor forces. Cheap labor, cheap land, and cost-effective transportation are some key points that make developing countries a hot cake for multinational companies. All the telecom companies in Bangladesh are owned by foreign companies.
Because it is considered a very good land for the development of multinational companies so that the company continues to look at such countries to get more profits with less capital. And actually it is part of a very good business strategy because the target of each company itself is to market as many products as possible and get the largest possible profit with very simple capital. This is a very mature calculation because when the company has no competition with local companies there, then at least they can dominate the market a bit for this.
Less capital? I am not sure with that. What about the traveling cost, the rent, and others? But they are not worried with it because they are hoping that they will recover it all and earn more if their plans became a success. They can't just create more products but they need to estimate its demand first if it's strong or not so that there will be a less waste.
In the competition part, this would depend on what is the type of business they are creating but I think each business now are all given. I mean there will always be competitors wherever country they are going. What can they only do is to create a unique product which design, features, etc are not seen yet in the other.