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Reward Points: | 8 |
Efficiency:
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Arguments: | 1 |
Debates: | 0 |
While it seems as though MNCs can provide goods that were previously unavailable, thus giving the consumers choice, in the long-run, this could be counter-effective because it can cause local companies to go out of business, reducing the competition and choice that used to exist in the market. An example of this is when supermarkets, such as Wal-Mart, open up in small towns internationally. Since they benefit from economies of scale, they can charge lower prices and can drive the competition (the smaller local stores) out of the market. So eventually, the consumers lose choice as they can only buy from the larger supermarkets.
I am probably a good person but I haven't taken the time to fill out my profile, so you'll never know! |