It is undeniable that with the spread of globalization over the last few decades, it has become easier for large scale companies to expand, turning over significant amounts of money. This development, according to some, should be deemed to be negative due to threats they pose on local businesses. While I am inclined that international companies enable most developing countries to be flourished in today’s high market competition world, reducing the level of poverty.
It has been suggested that the primary argument against multinational corporations is that they push local businesses towards bankruptcy and financial debts. It is not a secret that most leading companies heavily invest in marketing, research, development and recruiting new professional staff, to name but a few. As a result of this, small local businesses barely make ends meet and thus function on small no profit margins. For example, when a world-famous fast food brand KFC started its operations in Uzbekistan, many local fast food outlets could not compete, thus leaving the market. Such cases clearly highlight the negative impact of big companies on employment rates and financial stability among local business owners. The next concert is tightly linked with the proportion of carbon dioxide, which is escalating due to a production scale. Air pollution, water contamination and soil erosion are vivid examples of this issue that is happening in almost all underdeveloped nations.
On the flip side, I subscribe to the idea that development of international corporations should be seen as a progress for three major benefits. One is their contribution to employment figures, meaning that their scale requires a large number of staff members. This process not only reduces the percentage of unemployment among local residents but also improves the economy of host countries. In financial terms, huge amounts of taxes are allocated to the government that can be spent on vital areas, including infrastructure, education and healthcare. Doing this enables local communities to have an access to better educational establishments with experienced trainers and medical clinics with professional physicians. Furthermore, the growth of such businesses boosts the global reputation of a particular nation. It other words, it means that the more intercontinental companies a country welcomes, the more resources it acquires.
In conclusion, the rise of multinational corporations can pose certain challenges to local business owners. Despite these, my objective perspective is that they should be regarded as a positive development for their contributions to employment and economy as a whole. Therefore, I believe that countries, especially developing ones must accept these opportunities to diminish inner challenges and achieve prosperity.