Large businesses have big budgets for marketing and production and as a result, people gravitate towards buying their products What problems does this cause? What could be done to encourage people buy local products?

Nowadays, people prefer buying the products of large companies which spends a big sum of money on marketing and production. In

this

essay, I will discuss the problems caused by

this

behaviour as well ways to encourage society to buy locally produced goods. As companies increase in size and produce more, they achieve economies of scale.

As a result

, they are able to compete in the market by offering lower prices.

In addition

, they spend a lot of money on marketing and promotion, which induce people to buy more of their merchandise.

This

causes a major problem. People are discouraged to buy locally produced products which can destroy the local economy.

For example

, Egypt is famous for producing high-quality cotton.

However

, the garment industry is suffering because of the intense competition from Chinese corporations, as they offer very low prices compared with the Chinese alternative.

Consequently

, Egypt is now exporting the majority of its cotton production as a raw material, which can be produced outside the country.

Hence

, it deprives the country of the value-added impact of production on the economy. There are some strategies to overcome that.

Firstly

, the government in Egypt can encourage investments in apparel manufacturing by incentivising local investors,

for example

by reducing taxes for

this

sector. Another strategy is to provide low-interest loans to small and medium-sized businesses.

Secondly

, the manufacturers can produce high-quality output with high-quality cotton locally grown, to appeal to high-end consumers. In conclusion, price competition from the big corporations is fierce, and consumers are lured by low prices which can kill local industries.

Nonetheless

, several strategies can be made to induce consumers to buy local commodities.