Denso
Essay by 24 • January 4, 2011 • 542 Words (3 Pages) • 1,103 Views
I would like to start our debate with what FDI actually is?! F - foreign, D - direct, I - money. What direct
orDirector really does вЂ" he’s got power / control and make decision. Do you know some Czech
company? Or maybe you think that such companies as: Prazdroj, Budvar, Bata, Skoda, TV Nova, TV
Prima are Czech companies?No, they are not… So and now I would like to talk about 5 reasons why
we are against FDI!
1)Less Product of local companies. Foreign companies' products usually depress a country's
products; they increase the level of competition. Domestic products cannot be developed properly due to
the foreign competitors and often either reduce the level of production or just disappear from the market.
(the example could be Tatra, Zetor). Due to high level of competition in Russia even special
advertisements appeared with the slogan "Support the domestic producer" with illustrations of milk and
meat on Russian fields.
2)Profit goes out of country. A country's economy suffers since all the money go directly to the
foreign companies. We may take Tesco as an example of this situation. Tesco is considered as a giant of
modern all-types-of-goods Czech trading. Tesco turnover exceeds 30 billion Ks every year, the highest one
among other hypermarkets. The great deal of this amount is not staying in the country, but leaving to the
UK. Tesco is so powerful now, that it even superseded other foreign companies that operated in the Czech
Rep. For example: (group Delhaize from Belgium is leaving the Czech market because of the low income,
again mainly because of Tesco presence).
3)Over take market control ( buying out of shelves for product). A foreign
company sometimes can over control the market situation. For example, Spanish Telephonica O2 has
recently come to Czech market, but already become the telephone services providing company #1 (Number
1) in the Czech Republic. The statistics says Telephonica O2 is the most popular operator
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