Due to the development and rapid expansion of supermarket in some countries, many small, local business are unable to compete. Some people think that the closure of local business will bring about the death of local communities. To what extent do you agree or disagree? Give reasons for your answer and include any relevant examples from your own knowledge or experience.

Globalisation has impacts on the economy of some countries. It can affect how people buy something. Nowadays, foreign brands establish their mall in domestic markets. Their existence hampers the local vendors because international franchise offers a more convenient way of shopping.

Furthermore

, the shopping centre provides cheaper prices than small businesses. So, regarding those reasons, I agree that supermarkets will directly compete with local businesses and bring the death of local communities. In Indonesia, foreign mall brand

such

as K-Mart from the United States has good-looking store rater than small local

stores

. Their

stores

have air conditioners and provide a place to enjoy meals the consumer have been bought. Those conditions are hard to find from old-local

stores

. They

also

provide electronic channel payment as well as cash payments to consumers. When people forget to bring their wallets, they can pay from their mobile phone using an electronic wallet or bank transfer. The supermarket

also

sells relatively cheap products for two reasons.

First

, it has more efficient chain supply management so it can reduce the unnecessary costs incurred.

Second

, they can find the cheapest suppliers using their advanced technology. They

also

give price discounts when possible. If so, most of the micro-enterprises which supply small businesses cannot survive. They do not have well-organised management.

Moreover

, they have to reach the scale of economies in which the price discount is not offered to consumers. To conclude, malls will bring bad impacts to the local economy. It needs government intervention to balance the condition. Their policies should accommodate the development of modern shopping vendors without leaving the local

stores

. When the government cannot formulate the appropriate policies, it is hard to see that sustainability of local markets will remain in the near future.