In most countries, multinational companies and their products are becoming more and more important. This tread is seriously damaging our quality of life. To what extent do you agree or disagree?

The liberal economic policy has broken the boundaries to expand the businesses to any country it is willing to do so. Because of

this

free-market movement in the modern world, companies with a global presence have been able to establish their operations across the world and their commodities have managed to outcompete other products. Some argue that the mentioned trend has several adverse impacts on the citizens and especially on their quality of life. In my opinion, I can not fully agree with the said notion and the essay will illustrate my view with examples. The arrival of big establishments could generate many positive impacts in direct, indirect and induced ways.

Firstly

, it will help to increase the job market which is a crucial aspect for many of the emerging economies of the world.

Additionally

, consumers will have a better reach towards global products that would help to elevate the quality of life.

Secondly

, the arrival of multinational companies would create many indirect opportunities for the other related parties associated with the value chain.

For instance

, setting up a big factory in an area would help the locals to become suppliers and transportation providers.

Thirdly

, there will be positive induced impacts to the economy as a whole.

For example

, starting a manufacturing arm would help the locals to be engaged in several economic activities and

further

the financial benefits they gain out of

this

initiative would divert to another set of people through their purchases.

On the other hand

, there are certain disadvantages as well. The spread of giant establishments would discourage the local business owners due to the threat of heavy competition.

Besides

,

this

could lead to a situation of creating a monopoly in some industries.

However

, the mentioned disadvantages can be irradicated through economic policies.

For instance

, India was able to attract many large scale companies to the country through local partnerships

such

as Hero Honda.

Hence

, there are plenty of benefits that local entities

also

get to enjoy

such

as knowledge sharing, the latest technology and best practices. In conclusion, the presence of multinationals surely have many positive implications and these advantages are capable of outweighing the disadvantages.

Further

, the right government intervention will definitely be a key to overcome the mentioned negativities.