Multinational firms prefer the former country over the latter because of its superior infrastructure, population strength and per capita discretional spending. However, these firms generate positive as well as negative impacts over the local labor markets, through wage, export and productivity spillover effects. Multinational business firms have created greater job opportunities in the industrial and tertiary sectors of China and Indonesia. The labor rights of these countries have achieved global standards. However, many foreign firms outsource laborers through contracts and hence generate employability in a volatile pattern. Finally, the paper has evaluated that the labor force is managed for creating the biased, asymmetrical and perplexed response to the international firms. These responses can affect the local labor markets positively or adversely. .A labor market is a destination where the employers and workers relate to each other (Bama, 2004). In such a market, the employers intend to hire the best workers and in turn, the employees compete against each other to get the most satisfying job (Bama, 2004). In a modern economic system, the labor market operations are determined by the aggregate supply and demand for labor. However, the strength of employment demand and supply depends on the changes in the bargaining power of the employers and the employees. Flexible labor markets accompanied by low welfare costs are the primary symbols of economic growth in a nation. Social welfare is maximized under perfectly competitive market but the modern economies are governed by mixed economic principles.