I noticed a post on Facebook recently that said that we should use only Indian Company produced goods because if we buy from MNCs, the profits go abroad. Because of this reason, Rupee has been taking toll against the dollar. They say Indian economy has weakened.
While some of this may be true, does it really matter to us. Of course, I love my country. I want my country to be successful. But does the issue really affect the people?
Let's see, I'm a consumer buying goods from an MNC. Why would I want to switch to a desi company if the products are expensive?
There are many reasons the MNCs are successful.
1. They have aggressive marketing strategies.
2. They spend billions on advertising.
3. They are ready to accept lesser profit margins.
4. They have cash reserves which will serve them if they undergo a loss.
Due to these reasons, an MNC is able to provide me with goods and service far less expensive than any desi company. Our country has been strongly opposing Foreign Direct Investment in the Retail Sector. Why? Because of lobbying of our desi companies who want higher profits or because the MNCs are able to provide same goods and services for lesser prices.
Being a business minded person, I know that if I want to survive in the market, I need to be competitive. I should be able to offer goods and services at lesser prices with better quality.
As a consumer, I don't want to look at my seller. I don't care if he's a desi company or an MNC. What matters to me is the price and the quality of service. As long as they are good, I'm not worrying about the Rupee value against dollar.