Countries should restrict foreign companies from opening offices and factories in order to protect local businesses. Do you agree or disagree? Give reasons and specific examples to explain your answer.

They believe that the state should refrain from opening the foreign companies’ offices and branches in order to assist local business, which lead to heavy competition in the market. I totally disagree with the statement. In support to my opinion, many countries are trying to attract other countries’ business in order to help unstable economy, which creates job opportunities, boost the economy and shipping industry, helps many other sectors in the territory. Foreign investment is playing a vital role in some economies as it reflects in GDP and helps country trade along with opening doors for domestic firms to new destinations.

For instance

, when Barclays and Standard Chartered bank open their branches

first

time in Pakistan, they bring new software and system which brings complete change and Pakistan witnessed significant growth especially in the banking sector.

However

, local businesses feel that heavy competition and threats to their growth, but

this

competition gives them edge to adjust prices and quality to survive in the market for longer period.

Nevertheless

, factories and branches from outside countries bring research and innovation to the industry.

For example

, when Carrefour invests in Pakistan it brings new technology, marketing strategy and other things which boost departmental stores in the country. Not only

this

, but it helps local firms to bring innovation and adopt the new system with different strategy. To conclude, foreign investment should not be stopped as it is essential and helps in economical growth to under developing countries and their local firms,

although

it brings new technology and strategy which helps domestic business as well as create employment opportunities.