Five Reasons Why I Advocate Buying Local Where You Go, as a Multinational Investor and/or Tourist

Getaway.PH

A few years ago, I wrote an article where I talked about how multinational companies can help in the Buy Local Go Lokal campaign. Tourism may be at an all-time high (depending on the months), so some people may travel out of the country. Some people may be going out of the country or to some places in the Philippines. Much of my travel plans were squashed by the COVID-19 pandemic. Now, I'd like to talk about another aspect of international marketing. It's all about buying local where you go. Of course, this means doing some study about the place where you're going, what places to avoid, and the best recommendations for their local products.

In life, it's a give-and-take principle, not a take-and-take principle. Various world religions and philosophies advocate the Golden Rule. This is, "Do not do unto others what you don't want others to do unto you." It can also be said, "Do unto others as you want others to do unto you." The principle is also applied in business and economics. It's like if you want to get discounts, offer discounts. Don't be the kind of person who insists on selling higher price while always begging for discounts. Of course, you need to sell at a higher price, at times, depending on accounting and economic factors. Now, I'd like to talk about what's good about buying local where you go.

Convenience because of availability

I talked about the stupidity of believing that FDIs wouldn't provide jobs for the locals. However, any good MNC will employ whoever is readily available at that moment. Why would an MNC, of all entities, want to bring people from their country to their country? Wouldn't it be more practical to employ people who are there than to wait for people from the other country? The same can go for why buying local can be practical, to where you are. It's all about convenience because of availability. 

Let's say that Jollibee invests in a certain country. Vietnam already has 150+ branches of Jollibee branches in it. Would Jollibee want to ship Filipinos to work in their branches worldwide, or would they employ the locals? In Vietnam, it would be best for a Filipino MNC to hire Vietnamese locals. A Vietnamese company in the Philippines would be best hiring Filipino locals. The same goes for the procurement of raw materials. If I were in Vietnam, I would get whatever is available in Vietnam. Vietnamese wood? Vietnamese ingredients? Whatever is available and in good condition is always welcome. The locals would know where to get them.

The same can go for transportation services. Sure, Grab and Food Panda are multinational services. However, there are times when one may need the local transportation services to transport a huge bulk of materials. Why would I look for a Filipino transportation service if I'm not in the Philippines? Why would a multinational investor look for their country's transportation service if they're in the Philippines? If one can find a good transportation service among the locals, then get it!

Freshness is better guaranteed (for perishable products)

Another reason I usually dislike buying imported food products from very long distances is this--the freshness quality. Take the Hershey's bars, for example. If they were produced in the U.S.--I can expect the freshness to be compromised. That's why when I buy international food brands--I usually ask if there's a Filipino branch available. Made in the locality means that the shelf time of the food and freshness is better guaranteed. When in the Philippines, I would usually want Goya. I would usually accept Hershey's only as a pasalubong (take-home gift) rather than buy it imported.

As mentioned earlier, there's the convenience and availability of local products. It's not just the cost but also the quality. Who wouldn't want to pay less for more? Of course, no one should expect #SahodItaasPresyoIbaba economics. There's always the need to raise costs whenever the cost of production, increases. There's always a need to reduce prices when economies of scale occur. The laws of supply and demand should never be ignored. Countries that did so are now suffering from it, like Venezulela. Back to the topic, the freshness of perishable products is a huge factor. Why would I want to ship flour that's passed through a longer shelf time from my country when I can buy freshly milled quality flour where I am? 

It may be like buying fish from the local market would be helpful. For example, going to Hokkaido, Japan, would mean getting fresh seafood. Buying fresh fish from the local market means the fish was shipped without passing through necessary refrigeration. One may be able to buy the fish fresh from the locale and have it prepared immediately. Japan is known for serving fresh fish. Why would I wait for shipment of fish from the Philippines, if I can buy it fresh in another country where I'm in? 

Helping the local economy (and local businesses) of the locality one's in

It's easy to talk about buying local and how it helps local businesses. I advocate buying local but not a the cost of becoming a xenophobe. What happens when one buys local where they go? It means helping the local industry of that country. Some local businesses are still struggling to grow. Instead of going for the local Jollibee or McDonald's in that home country, why not try their local restaurants? Of course, it's better to Google the best places, to avoid eating what would be considered pungko pungko or dirty places.

Think about how tourists and multinational investors help the buy local campaign. If I could rejoice at tourists eating at Filipino-owned restaurants, shouldn't I also return the favor by eating at local restaurants in another country? The tourists and multinational investors will eat what they can. They would have to pay in the local currency. It's always a no-payment no no-product/service policy. Availing of the local services means giving a customer boost--which means giving an income boost to that local business. When the income is boosted, it also means more taxable income. 

Any income boost would help these local businesses grow. It may allow the once-street vendor to establish their own store. It may allow the smaller to medium enterprises to grow. Tourism can help them get opportunities to earn more money, which they can use for investments and development. This may allow smaller businesses go grow to medium to large enterprises. 

Lower costs when buying local products

Imported products are more expensive because of transportation fees and tariffs. Whether one wants to admit it or not, a degree of protectionism is needed, although I don't advocate the Filipino First Policy. When you buy an imported product--the importer needs a refund for the transportation fees, which can increase depending onthe  distance. American products are bound to cost more than Asian products when one's in the Philippines. That's why I tend to prefer buying imported food products from the nearby Asian countries, rather than from the far West. They would cost less and have better freshness quality.

Buying local means lower costs. It's because the transportation fees would be lower. Transporting farm products from the countryside to the city isn't as costly as having to be shipped via sea or air. Buying local products when applicable means getting lower-cost goods. Why would I want to import flour from the Philippines if I were doing business in Vietnam? I would want to get flour made in Bac Giang (which is known for its agriculture) than having to ship flour from the Philippines. 

It would also mean being able to buy in bulk. Since I'm closer to the source of the product--I may be able to buy in bulk at a lower price. Back to the example of getting farm products from Bac Giang and I'm doing business in Hanoi. I would be able to use farm products from Bac Giang in bulk, for less. It's because of the lower accumulated costs in the supply chain. It didn't need to travel the distance between country to country. Flying within a country costs less than flying from country to country.

It's all about experiencing a different culture 

It would be dumb to go to another country and still look for something familiar. What's the point of doing so? When I went to China in 2007, I remember eating in Chinese restaurants as part of the tour. It gave me the experience of authentic Chinese food, over Chinese food that's been Filipinized for the Filipino palate. In 1998, I regret having been too ignorant of what Singapore was, as a Malay country. I wish I had tried the Malaysian food back then!

Tourists go to the Philippines to experience the Philippines. I went to Singapore to experience Singapore. Going to Taiwan means experiencing Taiwan. A Filipino going to Taiwan may want to try the country's pig blood cake, unless of course, the person avoids pork for whatever reason. Going to a Middle Eastern country would mean trying the porkless alternative, because it's a Muslim country. Eating Arabic food in Dubai or chicken curry in Hyderabad would allow one to know the international market better. 

Knowing different cultures means understanding the international market better. It's like not selling haram products in Muslim countries. It's like not attempting to sell beef products in Hindu/Buddhist countries. In the world of international marketing, ignorance isn't bliss and it's a bane.