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.
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
. In contrast
, I strongly support the ideology as this
enables good competition for creating better products
/services and eliminate monopolies in the industries.
To begin
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
and job opportunities. If such
initiatives are not encouraged the customers are left with inferior and out of date products
as they have no other options to chose from. For example
, 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
ahead, A market
place offering products
only from local business
can create monopolies. It can be intentional or lack of supply chain programs. Local business
is small in size and thus
can afford to capture the entire nation's market
. A foreign company can successfully expand its product line as they have the funds to do so. For example
, A small scale business
in India, manufacturing medical equipment will never be able to supply to its counterparts of the market
as transport cost can increase the cost price of the product and the customer will have no option to buy it. However
, a well established foreign company, P&G, has set up multiple factories in India for better reach of the market
and cheap products
.
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
and have a healthy competition with local business
for advancing technologies.Submitted by Shashank Sharma on
Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Writing9 with appropriate and specific direction to the original content.