Multinational corporations have had a huge impact on small businesses in the long run. This can be seen in industries such as food, clothing and textiles, e-commerce and many others. In the following research essay, we will examine the impact that multinational corporations have on small businesses in the clothing and textile industry. The impact can be seen in different categories such as quality and price of clothing, jobs and employment rates, closure of stores and factories due to the entry of these multinational companies and imports of the foreigner. The impact can also be felt in fashion. designers.Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay A multinational corporation is any business that has offices, factories, and other assets in more than one country, excluding its host country. (Investopedia, nd)A small business is any independent business. As defined by the SBA (Small Business Association), a small business is any business generating approximately $750,000 to $38.5 million in annual revenue. (Benilyn Formoso, 2017) The clothing industry is a good example to consider when discussing the impact of multinational corporations on small businesses. Human beings like variety. Consumers are fortunate to have a long list of options to choose from when shopping for clothing. International clothing brands set the standard worldwide for clothing and other items. This requires local small business owners to increase the quality of clothing sold while maintaining a reasonable price that allows them to compete with their competitors. (moneybags, 2015)Multinational companies often bring better quality clothing to the market, forcing small businesses to improve their work as well; this allows them to stay competitive and in business for the long term. However, when small retailers improve the quality of their clothing, their clothing becomes more expensive. Large retailers are able to sell good quality clothing at lower prices because manufacturing is cheaper when mass produced. Additionally, when equipment is purchased in bulk, compared to small businesses, suppliers offer larger trade discounts to large retailers than to small retailers, because these small retailers purchase a smaller quantity. (Julie Davoren, nd)Large international companies are able to offer their customers a lower price for various clothing items if they anticipate that selling the products at a lower price will increase the quantity sold; this results in an overall increase in revenue for the stores. The discounts offered to these large companies by their suppliers further allow them to offer their customers a cheaper rate than most local companies. There is also an unfair advantage in favor of multinational companies in terms of outsourcing cheaper materials and labor to other countries. (Leo Sun) Multinational companies such as Nike, GAP, H&M and other brands have been able to maximize profits through the use of cheap labor in Southeast Asia and other country where they were able to hide from strict US law enforcement. from America and Europe. (Anup Shah, 2006) Salaries are $100 per month; this is only a tiny percentage of the minimum wage in the United States of America. The words “Made in China” appear onmany items that a person can find in their house and there is a specific reason for this. Twelve designer shirts made in China can be sold at the factory price of $36 for all twelve shirts ($3 per shirt), but once these shirts are placed on the shelves of various shopping malls, the price of the same shirt is then down. sold for 30 dollars, ten times the original price. From this we can see how much profit multinational companies are able to make when their products are imported from China. (Prof Michel Chossudovsky, 2018)One of the opportunities that a multinational company can offer is the increase in the number of jobs available to the public. An increase in the number of employment opportunities decreases the unemployment rate of the economy, which results in economic growth which is a positive indication for the country. In contrast, multinational corporations may be viewed in a negative light in terms of employment. From a local business owner's perspective, when a multinational corporation opens its doors in your neighborhood, the number of unemployed people instantly decreases, thereby decreasing the number of people available for hire at your business. The business owner must now make their offering more lucrative for candidates; the owner will need to increase the salaries offered or include more benefits in the employment contract to attract the attention of potential employees. (Kevin Johnston, nd)Working for a multinational company, there is virtually no opportunity for improvement and growth from a person's current job situation. It is often better to intern in a small company rather than a large company. In a large company, a person only manages a segment of the project and cannot become sufficiently familiar with the entire project concept. Whereas in a small company, a person is given more responsibilities and gains more experience in the respective fields. Additionally, it is much easier to get promoted in a small company than in a large multinational company. (quora)The exchange rate plays a vital role in small businesses. When the exchange rate is strong, local small business owners find themselves in a difficult situation. Due to a stronger rand, international brands that trade in US dollars are proving to be cheaper options for consumers than buying from their local stores. When the rand is weak, it is easier for local traders to compete in foreign markets. (page 452 of the ecological manual))The entry of multinational corporations into the economy of a particular country can worry small business owners. For example, Hilton Weiner, Jenni Button and Aca Joe are all South African brands that are now rare to find. In 2015, the Platinum group would have gone into liquidation and stocks would have been sold in 59 stores of the 5 brands (Hilton Weiner, Jenni Button, Urban, Aca Joe and Vertigo) and some would have already closed their doors. (eNCA, 2015) However, the day after the statement was released, The Platinum Group rejected claims that it was in liquidation. (eNCA, 2015) South Africa has experienced a series of negative events that have resulted in the closure of a large number of businesses over the past 15 years. One of the reasons for this is the increase in imports from abroad. Local manufacturers are able to compete with imported clothing in terms of speed. Locally produced clothing can make the latest trends at.