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.