Number of companies that are selling their products worldwid
Posted: Mon May 12, 2014 2:39 pm
Industrialization and Technological advancements have increased production capacity of companies multifold. Companies therefore are searching for new markets worldwide to sell their products. Many people have welcomed this move by the companies but there are others who are against it.
Many commentators are of the view that if the companies are allowed to sell their products worldwide they would pose a threat to the local markets. They argue that it would be very difficult for the local vendors to cope with the standards and prices offered by these foreign companies. This may eventually result in closing down of such shops and increase in unemployment. The other argument put forward is that companies will be more focused on foreign markets those earn them more profits while the consumers at home may suffer.
However, there is a different perspective to it which depicts various advantages of opening market to companies worldwide. Firstly, consumers get lot more choices to choose from. With variety of products made available by different companies consumer will have advantage to choose the product that suits best to his/her needs. Secondly, product’s standard will rise and prices will fall. Companies will compete against each other to provide best quality product at cheaper price to the consumers. Lastly, as the foreign companies enter the market, country’s economy strengthens. Foreign companies bring along with them foreign currency which contributes to the GDP of the country.
Finally, if we look at both side of argument we understand that it is a very complex issue with no clear answers.
Many commentators are of the view that if the companies are allowed to sell their products worldwide they would pose a threat to the local markets. They argue that it would be very difficult for the local vendors to cope with the standards and prices offered by these foreign companies. This may eventually result in closing down of such shops and increase in unemployment. The other argument put forward is that companies will be more focused on foreign markets those earn them more profits while the consumers at home may suffer.
However, there is a different perspective to it which depicts various advantages of opening market to companies worldwide. Firstly, consumers get lot more choices to choose from. With variety of products made available by different companies consumer will have advantage to choose the product that suits best to his/her needs. Secondly, product’s standard will rise and prices will fall. Companies will compete against each other to provide best quality product at cheaper price to the consumers. Lastly, as the foreign companies enter the market, country’s economy strengthens. Foreign companies bring along with them foreign currency which contributes to the GDP of the country.
Finally, if we look at both side of argument we understand that it is a very complex issue with no clear answers.