Large corporations and international brands have the power and resources to attract masses towards their products. They can spend an enormous amount of money on marketing and advertising campaigns to lure consumers into buying their products. This may cause various problems and there are a few steps that can be taken to convince consumers that buying local product would be more beneficial.
The dominance of large businesses will create monopoly and discourage competition. For example, the presence of the mammoth size corporation or a few large corporations would not let a new entrant enter the market. This would be a win-lose situation as the big conglomerates would be the only winner. Had there been more players in the market, there would have been competing in terms of quality and price of the product and buyer would have more choice and freedom. Consequently, it would be a win-win situation for the businesses as well the customer.
Moreover, big businesses are regarded as “too big to fail”. But when they fail, they wreak havoc and cause a widespread economic crisis. For instance, when Lehman Brothers declared bankruptcy, its effect was so pervasive that it triggered an international financial crisis and the global economy has not yet fully recovered from that crisis.
On the other hand, different measures can be taken to pursue people to consume local products. First and the foremost is that awareness must be given to consumer that buying local product would not only be beneficial for the purchaser but also for the entire nation. Moreover, the government must encourage entrepreneurship and small medium enterprises by granting easy access to loans and funds.
Therefore, the crux of the matter is that large corporations are indeed vital for economic progress. However, if they fail, it can cause an economic turmoil. So, there is a need to maintain a balance between large businesses and small medium local enterprises.
Large
corporations
and international brands have the power and resources to attract masses towards their
products
. They can spend an enormous amount of money on marketing and advertising campaigns to lure consumers into buying their
products
. This may cause various problems and there are a few steps that can
be taken
to convince consumers that buying
local
product
would be more beneficial.
The dominance of
large
businesses
will create monopoly and discourage competition.
For example
, the presence of the mammoth size
corporation
or a few
large
corporations
would not
let
a new entrant enter the market. This would be a win-lose situation as the
big
conglomerates would be the
only
winner. Had there been more players in the market, there would have been competing in terms of quality and price of the
product
and buyer would have more choice and freedom.
Consequently
, it would be a win-win situation for the
businesses
as well
the customer.
Moreover
,
big
businesses
are regarded
as “too
big
to fail”.
But
when they fail, they wreak havoc and cause a widespread economic crisis.
For instance
, when Lehman Brothers declared bankruptcy, its effect was
so
pervasive that it triggered an international financial crisis and the global economy has not
yet
fully
recovered from that crisis.
On the other hand
,
different
measures can
be taken
to pursue
people
to consume
local
products
.
First
and the foremost is that awareness
must
be
given
to consumer that buying
local
product
would not
only
be beneficial for the purchaser
but
also
for the entire nation.
Moreover
, the
government
must
encourage entrepreneurship and
small
medium enterprises by granting easy access to loans and funds.
Therefore
, the crux of the matter is that
large
corporations
are
indeed
vital for economic progress.
However
, if they fail, it can cause an economic turmoil.
So
, there is a need to maintain a balance between
large
businesses
and
small
medium
local
enterprises.