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.

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In an era of globalization, it is common to have an office and factories started in a foreign land. Some people believe in doing so it hampers local
business
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.
In contrast
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, I strongly support the ideology as
this
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enables good competition for creating better
products
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/services and eliminate monopolies in the industries.
To begin
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with, when a foreign company is opening an office or factories it brings many benefits along with them. These benefits include advance technology, better
products
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and job opportunities. If
such
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initiatives are not encouraged the customers are left with inferior and out of date
products
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as they have no other options to chose from.
For example
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, Detroit city was amongst the top flourishing metropolitan as it was American automaker's manufacturing hub. For long, these companies developed cars with high emission and poor efficiency mechanism. Until competition struck from Japanese automakers by introducing hybrid cars that were low in emission and great efficiency.
Further
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ahead, A
market
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place offering
products
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only from local
business
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can create monopolies. It can be intentional or lack of supply chain programs. Local
business
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is small in size and
thus
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can afford to capture the entire nation's
market
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. A foreign company can successfully expand its product line as they have the funds to do so.
For example
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, A small scale
business
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in India, manufacturing medical equipment will never be able to supply to its counterparts of the
market
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as transport cost can increase the cost price of the product and the customer will have no option to buy it.
However
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, a well established foreign company, P&G, has set up multiple factories in India for better reach of the
market
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and cheap
products
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. In conclusion, a nation having policies that invite foreign industries to open facilities inland can be thought as a better thriving marketplace and ensuring customers are benefited by good
products
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and have a healthy competition with local
business
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for advancing technologies.
Submitted by Shashank Sharma on

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