Around the world today, the number of small businesses are gradually vanishing due to the emergence of giant multinational organization, which take over their position in the market. While there are several drawbacks of this alteration, I strongly believe that they would be outweigh by the benefits.
On the one hand, there are 2 major disadvantages when tremendous international firms distribute more widely to overtake small companies’ position. Firstly, multinational corporations contribute to the deterioration of the environment. When establish in certain area, they might over-exploit the available resources for production or exerting by-products such at waist and unprocessed liquids into the surroundings which adversely affecting local residents. For instance, the Taiwanese company named Formosa dumped tons of liters of dirty water full of chemicals into a city’s river system, causing deaths to all the aquatic lives dwelling within and polluting the water used for living. Another point to make is that the disappearance of small companies may lead to a decline in national revenue. As they are accounted for a large proportion of total number of enterprises, providing the market with a variety of products in all sectors of the economy. Therefore, small businesses’ contribution to the total earning of a nation is undoubtedly significant.
On the other hand, I would argue these disadvantages are overshadowed by three main reasons. Firstly, multinational companies contribute directly to the economic development of the country in which they operate by creating employment opportunities for local people through factories and projects operating in developing countries. Secondly, local employees at multinational corporations could increase cultural awareness by the exchange of knowledge and work experience as well as cultures between countries. Multinational companies are acclaimed as pioneers in the research and development of new technologies, so they could transfer culture and knowledge to developing countries. Finally, the presence of multinational enterprises could improve local public infrastructures because they help to fund local projects such as road improvements, bridges building, etc.
In conclusion, it seems to me that the advantages of the emergence of big international firms are more profound than the drawbacks by their contributions to both local citizens as well as the national economy.