MULTINATIONAL COMPANIES BENEFIT THE SOCIETY.
We live in the world where the multinational companies set their rules on the market. Whatever shopping mall you go you will see the cornocopia of brands. This is a misconceptions because basically 90% of them are owned by corporations. Here we come to an idea of illusion of wariety and freedom to make a choice.
The most significant disadvantage of multinational corporations is a usage of lower prices to force the competitors out of business. It is rational and obvious that the majority of customers will choose a brand where the price policy is low rather than some start ups or just recently appeared brand where this policy is not so flexible. Multinatonal companies destroy small business by keeping prices low which they can do of their size.For a vivid example massmarket brands offer you low prices, up-to-date design and a vast number of market points but the quality suffer dramatically due to named reasons. Meanwhile some young designers' brand can offer you unususal concepts and expensive materials but the prices are much higher.
Another major disadvantage of multinational companies is using sweatshops and low wages. Firstly, to make prices lower they must save the percentage of it in some aspects. Here we see scandals appearing about closed sweatshops in China or India where children labor is used and where working conditions are awful.
Supporters of multinational companies point out that multinational companies offer their customers a choice and a part of that choice is lower prices. This is not entirely true since many of them set the stock prices, which are pretty equal, and the same in all the market points of these companies and since a majority of brands belong to the same multinational companies we see how inaccurate this claim is.
To sum up, there are unquestionably a lot of disadvantages of multinational companies. Rather than to satisfy business goals and profits of “market monsters” and follow their so called friendly price policy it is better to have a real freedom of choice and to reveal all the advantages of some independent brands which lack in customers’ support and suffer from far not equal competition. It is without any doubt instrumental in creating a level playing field both for customers and suppliers.
We live in the world where the multinational companies set their rules on the market. Whatever shopping mall you go you will see the cornocopia of brands. This is a misconceptions because basically 90% of them are owned by corporations. Here we come to an idea of illusion of wariety and freedom to make a choice.
The most significant disadvantage of multinational corporations is a usage of lower prices to force the competitors out of business. It is rational and obvious that the majority of customers will choose a brand where the price policy is low rather than some start ups or just recently appeared brand where this policy is not so flexible. Multinatonal companies destroy small business by keeping prices low which they can do of their size.For a vivid example massmarket brands offer you low prices, up-to-date design and a vast number of market points but the quality suffer dramatically due to named reasons. Meanwhile some young designers' brand can offer you unususal concepts and expensive materials but the prices are much higher.
Another major disadvantage of multinational companies is using sweatshops and low wages. Firstly, to make prices lower they must save the percentage of it in some aspects. Here we see scandals appearing about closed sweatshops in China or India where children labor is used and where working conditions are awful.
Supporters of multinational companies point out that multinational companies offer their customers a choice and a part of that choice is lower prices. This is not entirely true since many of them set the stock prices, which are pretty equal, and the same in all the market points of these companies and since a majority of brands belong to the same multinational companies we see how inaccurate this claim is.
To sum up, there are unquestionably a lot of disadvantages of multinational companies. Rather than to satisfy business goals and profits of “market monsters” and follow their so called friendly price policy it is better to have a real freedom of choice and to reveal all the advantages of some independent brands which lack in customers’ support and suffer from far not equal competition. It is without any doubt instrumental in creating a level playing field both for customers and suppliers.
Julia Kurnosova
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