Theme: Many developing countries have welcomed foreign companies, while others think that local business should be protected and supported instead. Discuss both sides and give your opinion.
Over the course of recent decades, a wide range of developing countries have been readily received foreign companies and their investments in order to augment the revenue in state’s capital stock. However, contrary to this view, it is widely recognized that instead of alien companies the ones that should be defended and encouraged instead is local business. Both approaches provoke convincing argument, which will be thoroughly considered on the essay domestic practices.
Another argument is that from the economic vantage point foreign firms may enhance the countries income to some extent in the form of tax revenue, since they are duty bound to make payments to the equipment as well as immovable property. The other side of this debate is that rather than foreign companies, intensive contributions should be invested in the local business, due to the fact that such investments prove to engender far-reaching and more sustainable profits in the long run compared to the ones, made for the alien companies. This implies that the considerable proportion of profit obtained by independently-owned, native businesses is inevitably returned into the country’s economy, thereby creating a stable money circulation within a country.
This, subsequently, would ensure steady enhancement of economic condition and, in addition, would strengthen the national currency, highly significant aspect, which is the backbone of any economy. A further point of maintenance of national firms is that this approach would provide a number of intangible merits, which are generally neglected by foreign companies. It appears that the local business give a particular emphasis on the quality of commodity or service, because they tend to take into consideration the opinion of community, in which they do not only make capital, but also reside and utilize all the benefits of native country to the full extent in the form of tax incentives as well as government handouts. Thus, the local businesses if supported may guarantee high quality and on top of that, be exceedingly amiable and considerate towards the local consumers.
To conclude, it appears that the promotion of foreign companies is a viable and quite admirable option for developing country, assuming potential benefits, however, it seems far desirable that instead of alien firms, greater encouragement should be given to the local businesses. While a large amount of capital inflow returns to the place, where it was originated from, a sizable proportion of income obtained by local firms revert to the country, not to mention other indefinite benefits such as respect for consumers and the marranty of high quality.