It is generally acknowledged that large multinational organizations are forcing small companies to vanish and taking over their position in the market. While having a rising number of multinational companies has several potential benefits, personally, I believe, they are both outnumbered and outweighed by the demerits. This essay will examine the advantages and disadvantages of this phenomenon followed by my personal point of view.
On the one hand, having more and more multinational corporations instead of small businesses has a number of merits; chief among them, the fact that they create win-win for interdependent countries due to the fact that the advantages that one side holds. Every country has unique resources of materials for production, therefore, multinational companies allow other countries' organizations to use their resources. This leads to having high-quality products at low prices resulting in satisfying consumers. This has been evidenced by numerous academic studies the latest of which is one published by the University of Sydney in 2018 concluding that multinational companies in Sydney use the power of reaching the resources all around the world which leads to efficient production. Therefore, they can decrease expenses by 50% by raising quality by 70%. However, small companies do not have that privilege.
On the other hand, replacing the small businesses with multinational organizations has innumerable undeniable disadvantages, the most detrimental of which is losing the cultural identity due to the fact that small ventures carry nations' cultural values the future. Having an increasing number of multinational companies creates oligarchy in the market resulting in losing the niche market which is held by small businesses. This leads to sharing the same culture with other countries as everybody uses the same type of products. As a consequence, individuals tend to forget their own cultural identity by not using specific products. According to the latest statistics released by the National Heritage of Russia in 2019, the younger generation has never heard of the Matryoshka dolls, as the small businesses were shut down due to the competition with large multinational companies before they were born. Nowadays, only 5% of small companies are producing the doll and they are struggling to sell the young as they do not know the culture.
In conclusion, whereas having more multinational companies in the market has several advantages such as producing high quality-low price items, they are undoubtedly eclipsed by the demerits which are losing the niche market products and having the generation who does not know their roots.
It is
generally
acknowledged that large
multinational
organizations are forcing
small
companies
to vanish and taking over their position in the
market
. While
having
a rising number of
multinational
companies
has several potential benefits,
personally
, I believe, they are both outnumbered and outweighed by the demerits. This essay will examine the advantages and disadvantages of this phenomenon followed by my personal point of view.
On the one hand,
having
more and more
multinational
corporations
instead
of
small
businesses
has a number of merits; chief among them, the fact that they create win-win for interdependent countries due to the fact that the advantages that one side holds. Every country has unique resources of materials for production,
therefore
,
multinational
companies
allow
other countries' organizations to
use
their resources. This leads to
having
high-quality
products
at low prices resulting in satisfying consumers. This has
been evidenced
by numerous academic studies the latest of which is one published by the University of Sydney in 2018 concluding that
multinational
companies
in Sydney
use
the power of reaching the resources all around the world which leads to efficient production.
Therefore
, they can decrease expenses by 50% by raising quality by 70%.
However
,
small
companies
do not have that privilege.
On the other hand
, replacing the
small
businesses
with
multinational
organizations has innumerable undeniable disadvantages, the most detrimental of which is losing the cultural identity due to the fact that
small
ventures carry nations' cultural values the future.
Having
an increasing number of
multinational
companies
creates oligarchy in the
market
resulting in losing the niche
market
which
is held
by
small
businesses
. This leads to sharing the same culture with other countries as everybody
uses
the same type of
products
. As a consequence, individuals tend to forget their
own
cultural identity by not using specific
products
. According to the latest statistics released by the National Heritage of Russia in 2019, the younger generation has never heard of the
Matryoshka
dolls, as the
small
businesses
were shut
down due to the competition with large
multinational
companies
before
they
were born
. Nowadays,
only
5% of
small
companies
are producing the
doll and
they are struggling to sell the young as they do not know the culture.
In conclusion
, whereas
having
more
multinational
companies
in the
market
has several advantages such as producing high quality-low price items, they are
undoubtedly
eclipsed by the demerits which are losing the niche
market
products
and
having
the generation who does not know their roots.