Multinational corporations have had a huge impact on small businesses in the long run. This can be seen in sectors such as food, clothing and textiles, e-commerce and various others. In the following analyzed essay we will examine the impact that multinational corporations have on small businesses in the textile and clothing industry. The impact can be seen in different categories such as quality and prices of clothing, jobs and employment rates, closure of shops and factories due to the entry of these multinationals, and foreign imports and impact can also be felt by fashion. designer. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay A multinational corporation is a company that has offices, factories, and other holdings in more than one country, not including the host nation. (Investopedia, n.d.)A small business is any independently owned business. The definition of a small business according to the SBA (Small Business Association) is any business that earns approximately $750,000 - $38.5 million in annual revenue. (Benilyn Formoso, 2017) The apparel industry is a good example to consider when discussing the impact of multinational corporations on small businesses. Humans like variety. Consumers are fortunate to have a long list of options to choose from when shopping for clothes. International clothing brands set the standard worldwide for what clothes and other items should look like. This forces local owners and small businesses to increase the quality of the clothing sold but at the same time maintain a reasonable price that allows them to compete with rivals. (moneybags, 2015) Multinational companies often introduce better quality clothing into the market sector, forcing even small businesses to improve their work; this allows them to stay in competition and business for the long term. However, when small retailers improve the quality of their clothes, this would result in their clothes becoming more expensive. Large retailers are able to sell good quality clothing at lower prices because it is cheaper to produce when mass produced. Just as when material is purchased in bulk, compared to small businesses, suppliers offer larger trade discounts to larger retailers than to smaller retailers, as these small retailers purchase a smaller quantity. (Julie Davoren, n.d.)Large international companies are able to offer their customers a lower price for various clothes if they anticipate that selling the merchandise at a lower price will increase the quantity sold; this translates into an overall increase in revenue for the stores. The discounts offered to these large companies by their suppliers also allow them to offer their customers a cheaper rate than most locally owned companies. There is also an unfair advantage in favor of multinationals in terms of outsourcing cheaper materials and labor from other countries. (Leo Sun)Multinational corporations such as Nike, GAP, H&M and other brands have managed to maximize their profits through the use of cheap labor in Southeast Asia and other countries where they have managed to hide from the rigid forces of order of the United States of America and Europe. (Anup Shah, 2006) Wages are $100 per month; this is only a small percentage of the minimum wage in the United States of America. The words “Made in China” appear on many items a person might find in their household and there is a specific reason for this. Twelvedesigner 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 in various malls, the price of the same shirt is then modified. sold for $30, ten times the original price. From this you can see how much profit multinationals are able to make when their goods are imported from China. (Prof Michel Chossudovsky, 2018) One of the opportunities that a multinational company can offer is that there will be an increase in the number of jobs available to the public. An increase in the amount of job opportunities decreases the unemployment rate of the economy, which results in economic growth which is a positive indication for the country. At the other end of the spectrum, multinationals can be seen 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 immediately decreases, thus decreasing the amount of people available for hiring in your business. The entrepreneur now has to make his offer more profitable for the applicants; the owner will have to increase the salary offered or include more benefits in the employment contract to attract the attention of potential employees. (Kevin Johnston, n.d.)Working for a multinational corporation, there is almost no room for improvement and growth from a person's current employment status. Internships are often better to do at a smaller company than a larger company. In a large company one person only manages a segment of the project and cannot get enough exposure to the entire concept of the project. While in a small business a person has more responsibilities and gets more experience in their respective fields. On top of that, getting a promotion is much easier in a smaller company than in large multinationals. (quora)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 the stronger rand, international brands that trade in US dollars are found to be cheaper options for consumers rather than purchasing from their local stores. When the rand is weak, it is easier for local retailers to compete in foreign markets. (page 452 of the ecological textbook)) The entry of multinational corporations into the economy of a particular country may worry small business owners. For example, Hilton Weiner, Jenni Button and Aca Joe are all South African-owned brands that are now rare to find. In 2015 the Platinum group reportedly went into liquidation and shares were reportedly sold in 59 stores across the 5 brands (Hilton Weiner, Jenni Button, Urban, Aca Joe and Vertigo) and some have already closed their doors. (eNCA, 2015) However, the day after the statement was released, The Platinum Group dismissed alleged reports that it was in liquidation. (eNCA, 2015) South Africa has undergone a series of downturn events that have led to a large number of businesses closing their doors over the past 15 years. One reason is the increase in imports from abroad. Local manufacturers are able to compete with imported garments in terms of speed. Locally produced clothes can produce the latest trends at a faster pace than importing clothes from around the world. Clothing imported from China is often a cheaper option than clothes made by local shops, the reason for this is that the cost of labor in China is almost impossible to match and this helps to sell.