You are on page 1of 1

Due to globalization, the number of supermarkets has increased in recent years and

this poses a problem for small convenience stores. I think governments can target
a number of ways to deal with this phenomenon.

One of the side effects of globalization is its impact on local businesses. For
example, large supermarkets have sprung up in cities. A large supermarket has
everything to offer, including a wide variety of items, which has led people to avoid
the local stores. The items are imported from different countries in large quantities
and therefore the prices are very low compared to domestic stores. As a result,
local businesses cannot compete and support themselves and have had to close
their businesses and people are now unemployed.

One of the best approaches the government can take is to limit the licensing of
large supermarkets in residential areas. This means a detailed research must be
done before licensing. Local businesses generally thrive in residential areas. New
supermarket opening permits should only be granted to commercial zones.
Another approach is to tax large supermarkets and subsidize local businesses.
Local shops are usually run by locals and they do so to support families. Large
corporations often run supermarkets purely for profit.

Another innovative approach the government can take is to require supermarkets to


buy at least 40% of their goods from local businesses. This policy will help local
businesses thrive. If consumers prefer large supermarkets, local stores will do well
as suppliers.
In short, local stores cannot compete with supermarkets. This will lead to
unemployment. The government can do a lot to support local businesses and
shops by taking drastic measures such as restricting the licensing of large
supermarkets, taxing and forcing them to buy from local stores. directio

You might also like