Small businesses are disappearing and being replaced by large multinational companie. Do the advantages outweigh the disadvantages.

Nowadays, there is a growing number of large, established companies replacing the minors'. I believe

this

practice allows them to provide financial support to the locals through tax, and

this

advantage outweighs any potential disadvantages. One downside of the disappearance of small-scale startups is that it reduces competition, leading to monopolistic behaviour by multinational enterprises.

In other words

, they have no competitors for their products and can set their prices, especially for the expensive varieties.

For instance

, a railway company in Indonesia, namely Kereta Api Indonesia, can be said to be the exclusive one as they are the only transportation company using the railway and can regulate its price independently.

However

, I think

this

behaviour can be anticipated if the authority establishes policies that restrict

this

practice. On the beneficial side, the growing number of international firms can bring economic benefits

such

as increased tax revenues.

This

is

due to

the fact that they charge an additional cost for every product sold, which will be paid to the region. To illustrate

this

, consider that Apple has an official store in Singapore with annual sales revenues of 1 million dollars, contributing more than 100,000 dollars to the government

due to

the 10% tax rate on their products. I think

this

is a valuable opportunity for them since if they invest the funds in public services, particularly hospitals and schools, the community will greatly benefit. In conclusion, losing tiny businesses can lead to monopolistic practices. The drawback is far outweighed by the upside of contributing economic benefit to the local authorities;

hence

, they may spend it on better civil facilities.