You should spend about 40 minutes on this task.

Countries should restrict foreign companies from opening offices and factories in order to protect local businesses. Do you agree or disagree?

Give reasons for your answer and include any relevant examples from your own knowledge or experience.
Write at least 250 words.

 MODEL ANSWER>>>

It is generally viewed that in order to defend the local businesses, it is the responsibility of the concerned governments to restrict the operations of foreign companies in their territory. I agree to the statement to a great extent.

The prime reason why I tend to align to the view is because of the fact that an increasing number of local businesses are being suffocated by the activities of the multi-national companies. To be precise, local business entities are economically weak and most of these are independent firms, which are unorganized. These features make them fail during instances when they have to compete with international businesses. For example, as they have lesser customers, they cannot reduce the price margin beyond a limit. This can be easily done by a foreign business firm, as they can compensate this loss somewhere else.

By having a critical look into the aforementioned situation; it is unwise for any responsible government to worsen the scenario by sanctioning offices and factories of such business tycoons in their land. If this happens, it further strengthens their efforts to monopolize the trade and commerce inside the country, and this would result in the erosion of a country’s valuable economic resources. The ultimate result is the country’s economic collapse.

However, it is unwise to ban the entry and operations of foreign companies in a country’s territory, as it hinders its developmental pace. Therefore, a controlled and balanced business atmosphere is expected from a responsible government.

To conclude, considering the negative impacts on both the local businesses and the governments, the number of foreign companies which can operate in a country should be limited. It however does not mean a complete restriction, as it is also counter-productive.

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