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Why there could be a conflict between the multinational companies and the local

government hosting the multinational company?

To rule an empire requires power, influence, and capital. A local government, I


think is one of the best example to conclude when we talk about governance. They are
known as the head administration of a particular town, county, or district, with
representatives elected by its citizens. Moreover, they hold the responsibility to provide
good quality of public service among its people, specifically; comfortability, safety, and
industrial growth.

Business ventures like multinational companies provides contributions to build


industrial growth. In which we treat them as an instrument to a wide distribution of
capital, technology, employment, goods, services, and even skills over national
boundaries. They may not be as powerful and influential as a local government, they
still provide many opportunities to either unify more the society, or otherwise, harm its
economics or industrial growth. The relation of a multinational company and a host local
government may face conflicts due to some of their goals and perspectives could be
contradicting to each other. Both of them possesses power that can control and
influence the industry and lead to destruction of someone’s governance and industry.
One of the many possible conflicts could be the multinational companies may possibly
eliminate the domestic industry by overtaking the host country’s market. Another is the
natural resources of the host country may be used indiscriminately by the multinational
companies and cause depletion afterwards.

To sum it up, the opportunities brought by multinational companies to their host


country gives both direct and indirect assistance to boost an economy, but not an
assurance that it will always provide good benefits to a certain country. The downfall of
a domestic industry is not possible if we let multinational companies to dominate their
power and influence uncontrollably.

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