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 and specific examples to explain your answer.
Give reasons for your answer and include any relevant examples from your own knowledge or experience.
Write at least 250 words.
It is argued that in order to safeguard local businesses, there should be restrictions on the openings of foreign companies in a country. I agree that foreseeing the threats, some restrictions are essential. However, on a whole, it is not good for the progress of a country.
The predominant reason why I do not favour such restrictions is because of the fact that it hinders the economic prosperity of a country. To be precise, when a lot of foreign investments are attracted towards a country, it strengthens the economy of a country. For example, Ford is a renowned car manufacturing company, and when it starts its own company in a country, customers can avail branded cars at cheaper rate. As the sales boom, the country would benefit financially.
The next reason behind my disapproval is because of the stagnation of the overall development of a country. When a multi-national company starts a new business in a country, the country would not only benefit economically, but also opens a lot of opportunities for the local residents. A great deal of employment opportunities, infrastructural developments and starting up of associated businesses are a few benefits in the list.
I admit that some multi-national giants would create havoc among the local businessmen. Many often local businesses face critical threats from these powerful companies, and at times some had to close their businesses. This situation should be avoided by some sorts of legal formalities. Instead, a healthy competition has to be promoted.
To conclude, it is clear that awarding free privileges to foreign companies is an unwise idea. At the same time, if a country does not provide a favourable environment for foreign investments, its economy would suffer badly along with a stagnated development.
Word count: 290