Some people claim that governments should safeguard traditional companies when they compete with global corporations. There are some benefits associated with this trend. I think these benefits slightly outweigh the drawbacks.
On the one hand, one key advantage of government collaboration is to preserve local industries and employment. It is true that international organizations dominate international trade, creating job opportunities for many people. Besides, global companies are well-equipped with modern technology. This leads to increased production and low production costs, whereas local businesses are not furnished enough to produce a larger amount of goods and sell at a lower price. Therefore, local businesses cannot compete with them. Consequently, they have to shut down their business operations. Government cooperation is needed to tackle this situation and increase the supply of goods at an affordable rate.
On the other hand, it is important to highlight that the drawbacks of government aid slightly outweigh the advantages. One possible drawback is that without interacting with global business authorities, a country’s economy will not succeed in the long run. For example, millions of dollars are generated through foreign investment every year; if this process is stopped to preserve local businesses, it will highly impact our local business industries. Local industries import raw materials from several countries to offer quality products for consumers; likewise, local people heavily rely on international goods to get better quality products. If the government carries out protective measures, we will have to buy lower-quality products at unaffordable rates.
In conclusion, it is true that getting government support to safeguard local industries has some benefits. It seems to me that the benefits slightly outweigh the drawbacks.