Some states prefer to create better conditions for international investments in their economics, while others are more involved in strengthening local manufactures’ position on the market. For citizens’ well-being it is more beneficial to broaden horizons of national businesses in order to improve state’s image in the world and encourage human resources to internal employment space.
Firstly, the most world famous corporations are always strongly associated with countries where they were established. When it comes to the prestige of working in the particular place, it is considerably advantageous for national governments because it invites more and more well-qualified workers and makes job market more competitive. For instance, nowadays many people are dreaming of being hired in enormous companies such as Apple or Google, what simultaneously increases attractiveness of life in the USA.
Another point to be added is that the development of local businesses has an impact on state’s position in international relations. Well-organized internal trade boosts diplomatic power and opens more opportunities to be heard in every region of the world. An excellent example can be Taiwan due to the production of wide-spread chips for various types of smartphones. The ability of their specialists to make such unique details has already helped them to achieve geopolitical support from the United States, which is crucial in terms of the conflict between China and Taiwan.
To make the bottom line, it is significantly more relevant for political elite to put an effort into the improvement of national businesses instead of encouraging foreign companies to set their companies up there. The purpose of this policy is aimed at country being in demand among professionals as well as strengthening its diplomatic influence.