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

One of the significant factors that determine a country's attractiveness is the ease with which multinational companies can set-up their offices. In some parts of the world, it is a common belief that governments can safeguard local companies if they do not allow foreign organisations to establish a base there. I completely disagree with

this

viewpoint, since there are manifold advantages of inviting well-established, international companies to set-up plants, factories, and offices in a country. The most apparent lacuna of protecting local companies from external ones is the imminent threat of becoming obsolete. Many under-developed nation's governments consider foreign companies as a direct risk to their native factories.

However

, in reality,

this

support from the government becomes more of a crutch.

As a result

, often these local businesses go into complacency, and

thus

do not make efforts to improve upon their technology.

Furthermore

, they lose any chance of being considered a competitive nation,

hence

losing a substantial share of the mutual benefits accompanied by global trade. Countries like Afghanistan and Venezuela are fitting examples of

such

a scenario. It is challenging for a non-native entity to form any business there.

Such

policies have resulted in their economy living in a cocoon and not increasing.

On the other hand

, states that welcome multinational organisations in their areas, see not only a surge in their economy but

also

suffer less unemployment. To illustrate with an example, countries like the USA and Vietnam, by offering numerous benefits, have seen the influx of Japanese and European MNCs.

Moreover

,

this

has resulted in several job opportunities for the locals and has brought about an advanced level of technology.

Similarly

, local companies in equivalent industries have imbibed the latest technology used by these MNCs. They have grown stronger to compete not only with the neighbouring entities, but

also

with the world as a whole. To conclude, I disagree that foreign companies are a threat, and attest that the local companies should work side-side-side with MNCs. Not only will

this

boost the economy of the region, but

also

make the nation an attractive place for foreign direct investment.