▶ Your Answer :
Most of the countries adopted capitalism
as their market system. As free competition based on fairness can maximize the
productivity as well as efficiency, people have little disagreement considering
capitalism as the most desirable market system that has been developed. Unfortunately,
however, tyranny of large companies in modern society has become a frequent
topic of people’s debate in that it harms the core norm of capitalism by
disabling fair competition that ultimately decreases motivation. As the point
of local markets and its economy, proper measurements should be carried out by
government.
Enormous funds that the big companies
have infringe fairness in competition at the local market. Providing an
environment where people from all different classes can make profits depending
on their ability is the pivot of capitalism. Although, it is not justice to blame
successful companies to spend their money as long as it is illegal. Therefore,
taking an advantage at the first place with the profits from the previous success
is one of motivations of capitalism. Nevertheless, since investment on
marketing with large budgets can deprive local market’s motivation for
competition, people might not even have a chance to start competition at the
marketplace. As a consequence, market with no competition is doomed to be asymmetric
that leads to monopoly. Monopolized market, run by one big company, decreases
the motivation for further development in the quality of their products that
will affect customers negatively. Moreover, as profits of the large companies
tend to be spent on elsewhere rather than local community, the society will
lose its growth power.
To cope with this problem in advance,
government should intervene in the market to guarantee at least the participation
of local businesses. Although it is impossible to eliminate the gap between the
local individuals and conglomerates, governmental subsidies need to be carried
out to minimize the unfairness. To be more specific, government can advertise
the local products on behalf of small entrepreneurs with limited funds. Moreover,
offering tax cuts for local markets can increase local businesses’ motivation at
the same time with keeping the market’s systems. More importantly, large
companies potentially harm the local society by triggering capital outflow. To prevent
or reduce the impacts of this phenomenon, government should enact regulations
that make big companies to invest certain percentage of their profits on local community
under the coercion. By doing so, the funds for the future growth can be saved
and the local markets can keep their business in the future. When these
measures are properly performed, malformation of market system that will harm
the local community and customers can be prevented.
To sum up, unfair competition between
the big companies and local businesses are very likely to harm the community by
disabling the capitalistic market system in the market as well as causing
outflow of local capital. To protect people and economy governmental
intervention to minimize the disparity in the market is essential.
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