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

As a wise man said:” trade can make everyone better off”.

Therefore

, I strongly believe that limitation the entry of foreign companies does harm than good for the development of a nation.

To begin

with, the most common reasons why foreign firms should be welcomed to open their branches as well as setting up factories in other nations is technological development.

That is

to say, there is a high possibility that foreign companies will bring their up-to-date technology to the host countries which tends to be more productive than what is currently available in the local market. As an illustration, the

last

decade has witnessed a significant increase of state-of-the-art technological innovations transfers to Vietnam due to the arrival of the Samsung – a well-known South Korean company

that is

one of the world's largest producers of electronic devices.

As a result

, GDP of Vietnam went up from roughly $100 billion to more than $250 billion in the

last

10 years, according to the Ministry of Finance.

Furthermore

, the host country might benefit from encouraging foreign businesses in various aspects.

Firstly

, when foreign firms officially open their branches in a country, they could create various job opportunities with better salary options.

This

is significant because unemployment and low income are the major sources of social problems

such

as crime and poverty.

Secondly

, the arrival of international companies will lead to tough competition, which might remove monopoly and forces local firms to regularly innovate and add more value to their products. Plus, the local companies

also

have to price their goods competitively and improve their services in order to overwhelm foreign competitors.

Thus

, foreign investment will bring benefits for not only the country, but

also

the consumers due to the fact that they get more options when completion occurs in the local market. Taking everything into consideration, foreign investment should not be restricted as it is essential and brings many benefits to the host countries

such

as receiving modern technologies, creating more employment opportunities, and improving the quality of products and services as well.