User blog comment:GrandMethuselah67/Character Sheet: Malcolm River/@comment-4867780-20161014010956/@comment-26322734-20161016020253

Okay, basically:

Businesses are for profit. Profit comes from the consumer. The consumer can choose not to buy from the business, thus causing it to lose profit, capital, and overall economic power. So businesses compete with other businesses to gain the favor of the consumer, avoiding anything that would keep the consumer or the employee away so that they can continue to collect profit.

"Isn't the entire real-world economy dominated by gigantic international firms ?"

Indeed it is. That's because the countries in which those international firms originate give said firms special privileges, which allow them to get as monstrously big as they have in the first place. An example is Wal-Mart, which in America is quite infamous for business malpractice. Government privileges towards the firm have made them a practical monopoly in the retail industry.

In truth, Wal-Mart lobbies in the government for higher minimum wage laws, which the government passes because, hey, Wal-Mart has money! The result is smaller competitors failing due to them no longer being able to afford employees. If the government hadn't stepped in, smaller businesses would be able to afford employees, thus Wal-Mart would have more competitors.

"Why would governments step in if everything is running as smoothly as you say ?"

Bribery/lobbying. Greed. People voting in more anti-business candidates. The reasons go on and on. Socialism is rather popular, and has been in throughout the 21st Century. People seem to be convinced that socialism is the answer here, which leads to distorted markets.