Impact of multinational company on small scale producer
Answers
A multinational company is a commercial organization that does business in many countries but headquarter is in its own country. It works in foreign countries by establishing units like subsidiary companies or associates, or mergers or mergers with local companies. Due to the size of its operation, on the basis of the circumstances, multinational companies can sometimes have a positive and negative impact on the economies and business of local companies in their host countries.
When the government creates a support system for multinationals, they do not always extend the same privileges for local businesses. It gives a benefit to multinationals. In addition, multinationals often take local businesses out of the market because multinational companies often sell better products, and these products are often cheaper than local competitors. Due to direct investment they come to the country, multinational companies influence governments on how to optimize the policies for MNCs. These policies are not always beneficial for local businesses.
Your small business cannot to compete with multinational businesses. The competitiveness of large groups in your local market can be dangerous for a small business owner, who has struggled to gain market share, but this is not the only impact of large companies. They can change the standards for doing business in your area and you can put them in the upgrade case so that you can reach new standards.
If your multinational company opens a place to you then the pool of staff available for your small business can be reduced. Since these big companies can hire many people, you can find yourself with fewer applicants. This can mean that you have to increase wages to attract talent. In addition, you may have to provide better returns to compete with multinational proposals.