It is believed that a contemporary group of individuals are inclined to use goods of huge companies as their budgets allow them to spend a lot of money on advertising. Nowadays, this problem is globilizing and may have a bad consequences, however, this issue can be tackled by taking relevant measures.
To begin with, not anticipating products of small companies may cause to their bankrupcy, which decreases the number of taxpayers and deteriorates local economy. In order to maintain stable economy, governments should fill their budgets and the vast proportion of money comes from little businesses to the budget. Insufficent money in the budget may lead to the inflation, slow developing of infrastructure and deteriorate standarts of living. For instance, Azerbaijanian people have a notion that well-known foreign products are much better than local and unknown ones despite the fact that it is cheaper, which leads to the constant inflation in our country.
Nevertheless, there is a solution of that issue that is proving to be successful in many areas. Firstly, the state can rise taxes for large companies which may prevent them from increasing sales. Furthermore, it gives an opportunity for small companies to promote their goods widely. For example, tax rate in Hungary for the vast businesses is extremely high. Because of the high difference in the prices of their products, there is no competition amongst big and small companies.
In conclusion, I would like to mention that, it is possible to deal with that problem by conducting right tax policy.
