Small businesses are disappearing and being replaced by large multinational companies. Do the advantages of this outweigh the disadvantages?

It is generally acknowledged that large multinational organizations are forcing small companies to vanish and taking over their position in the

market

. While having a rising number of multinational companies has several potential benefits, personally, I believe, they are both outnumbered and outweighed by the demerits.

This

essay will examine the advantages and disadvantages of

this

phenomenon followed by my personal point of view. On the one hand, having more and more multinational corporations

instead

of small businesses has a number of merits; chief among them, the fact that they create win-win for interdependent countries due to the fact that the advantages that one side holds. Every country has unique resources of materials for production,

therefore

, multinational companies allow other countries' organizations to use their resources.

This

leads to having high-quality products at low prices resulting in satisfying consumers.

This

has been evidenced by numerous academic studies the latest of which is one published by the University of Sydney in 2018 concluding that multinational companies in Sydney use the power of reaching the resources all around the world which leads to efficient production.

Therefore

, they can decrease expenses by 50% by raising quality by 70%.

However

, small companies do not have that privilege.

On the other hand

, replacing the small businesses with multinational organizations has innumerable undeniable disadvantages, the most detrimental of which is losing the cultural identity due to the fact that small ventures carry nations' cultural values the future. Having an increasing number of multinational companies creates oligarchy in the

market resulting

Accept comma addition

market, resulting

in losing the niche

market

which is held by small businesses.

This

leads to sharing the same culture with other countries as everybody uses the same type of products. As a consequence, individuals tend to forget their own cultural identity by not using specific products. According to the latest statistics released by the National Heritage of Russia in 2019, the younger generation has never heard of the Matryoshka dolls, as the small businesses were shut down due to the competition with large multinational companies before they were born. Nowadays, only 5% of small companies are producing the doll and they are struggling to sell the young as they do not know the culture. In conclusion, whereas having more multinational companies in the

market

has several advantages

such

as producing high quality-low price items, they are undoubtedly eclipsed by the demerits which are losing the niche

market

products and having the generation who does not know their roots.