A lot of international brands have become essential as well as comfort modern lifestyles. Nevertheless, it has been associated with negative consequences for the community as a whole. Thereby, this essay will substantiate the above notions with relevant illustrations in the following paragraphs.
One of the primary merits of multinationals is the enhancement of standards of living in the community. Because these conglomerates have access to huge capital structures, thereby they can invest more in research and development, resulting in innovative products with affordable costs. For instance, many nations lack the resources and expertise to manufacture sophisticated electronic equipment such as mobile phones and computers, whereas large international establishments are able to produce and distribute those products. Eventually, community standards of living will be upgraded worldwide.
On the contrary, large-scale foreign investments can negatively contribute to the to the domestic economy. Basically, local businesses could not rival multinational companies in production scales, cost, and technology. As a result, many small-scale domestic companies have closed down their businesses. Further, multinational corporations transfer their profits to the headquarters. Thereby, local resources will transfer to foreign countries, and exchange rates will degrade. This will hinder the long-term local economic growth.
In conclusion, though international brands enhance the standard of living, it can be adversely influenced on long-term domestic economic development. Thereby, it appeals that the demerits of multinational activities outweigh their merits. Hence, I partially agree with the statement that international investors seriously damaged quality of life as a community as a whole. So, it is necessary to control international investors activities and must provide some concessions to build domestic investments.