Small business are disappearing and being replaced by large multinational companies. Do the advantages outweigh the disadvantages?

In modern contemporary, the phenomena of the spread of international

companies

in many

countries

become part of the globalization process. Some people believe that it could have a drawback

such

as discouraging local people to open their own business, while others think that it can have myriad merit;

for instance

, boosting

countries

’ economy by lure foreign

investors

. I am of the opinion that

this

phenomenon's merits outweigh its demerits.

To begin

with, the main drawback caused by the existence of the international

companies

over local ones is that local business losses its market-ground, due to increasing number of the global

companies

, which in turn leads to increase badly the percentage of unemployment rate.

This

is because the existence of the market competition, between in-home

companies

and global ones, has been diminished.

As a result

, local

companies

closed their business and fired their employees.

Therefore

, some economists suggest that the government should put the rules and regulate the relation between both local and international

investors

.

Nevertheless

, despite the demerits previously mentioned, I believe that the benefits of

this

phenomenon outweigh its disadvantages. The reason for

this

is that foreign

investors

usually bring hard currency to the country, which boosts dramatically the country’s economy.

For example

, according to an article that has been recently published in the New York Times, 31 per cent of developing

countries

have been survived economically

as a result

of the reservation procedures of hard currency.

Therefore

,

third

-world

countries

often encourage foreign

investors

to invest in their

countries

; despite the fact that

this

could affect dramatically the unemployment rate. In conclusion, it is evident

this

essay highlighted the positive impacts and negative effects of the disappearance of small businesses and being substituted by global

companies

. In my opinion, the advantages greatly outweigh the disadvantages.