Small businesses are disappearing and being replaced by large multinational companies. Do the advantages of this outweigh the disadvantages?

Small businesses are disappearing and being replaced by large multinational companies. Do the advantages of this outweigh the disadvantages?

Nowadays, our government is giving multinational corporations chance to do their businesses here. Unfortunately, while they are evolving, small businesses are becoming to decline. In this essay we will discuss pros and cons of this issue.

On the one hand, foreign companies pay great amount of taxes for setting business and bringing necessary materials from abroad. In the result, the country’s budget will be enriched with foreign currency, that is by far significant for an economic development. KOICA is a good example of it. In addition, majority of local people will be employed. Consequently, there will be demand for interpreters. It causes to the opening of new directions at the high educational institutions. In fact, in 2008, at Fergana State University Japanese Language direction was opened to supply current Japanese industrial ones with qualified interpreters.
On the other hand, there are some drawbacks, too. Multinational companies enter to the inner market of a country and easily can capture it, if there is no any administrative limitation. It is obvious that they are powerful in terms of manufacturing goods as well as selling them. So, other small business companies will not be able to compete with them. Eventually, they will go bankrupt. It should be stated that, if a healthy marketing competition does not exist, national economics will be diminished. That will cause to not only fiscal, but also political inclining of our country to foreigners.
All things considered, although multinational companies bring much profit and benefits for Uzbekistan, I believe that small businesses should be encouraged as well. Otherwise, the country will be dependent on them. It would be better if appropriate rules are set in order to keep a healthy rivalry among companies.


(303 words)