Some countries encourage foreign companies to open a branch office in their country. Many people think that the government should focus on encouraging local businesses to expand rather than inviting foreign businesses to open branches. To what extent do you agree?

Some

countries

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allow international

companies

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to establish new

branches

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in their places,

while

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others argue that local businesses' expansion should be encouraged more. I agree that having more foreign

companies

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in the local areas benefits directly to the

host

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countries

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because it contributes to economic growth by increasing a higher employment rate and knowledge transfer. Setting up new

branches

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requires a huge number of employees, resulting in job creation. Foreign

companies

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can save their cost by hiring

workers

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who live in domestic areas

instead

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of importing

workers

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from their own

countries

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;

thus

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, they give more opportunities to local people to apply for jobs.

As a result

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, the

host

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country can generate more revenues through those

workers

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and

this

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benefits economic growth.

For example

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, many Japanese factories open new

branches

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in Vietnam so Vietnamese people get a higher rate of being hired and gain more salaries. In

additions

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addition

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,

host

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countries

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can learn new techniques

while

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working with foreign enterprises. International organizations tend to have best practices and solid work instructions that have

been

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proven their efficiency;

therefore

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, following their methods enables local

workers

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to finish tasks efficiently.

Due to

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knowledge transfer, homegrown businesses,

moreover

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, can be fostered to improve their standards to compete strategically with those from other

countries

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.

For instance

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, a chip

processors'

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processors

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manufacturer in Taiwan started working with foreign factories before adapting technology learned to open its own company. It

finally

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generates higher incomes than other old-school manufacturers. In conclusion,

although

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many people think that the government should foster local

companies

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to expand their

branches

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, prioritizing foreign enterprises to open new

branches

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in the local areas impacts the

host

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countries

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positively with knowledge transfer and job creation.