No, local competitors win out over multinationals. This is better in my opinion. Human capital and knowledge are more mobile than ever, and should be even more mobile (why can we import goods freely but importation of labor is tightly restricted?).

This means that local companies in small and developing countries have enormous opportunities they did not have in the past. But multinationals that dump goods into these markets in the hope of securing market share for the future (when the markets actually become profitable for them) are a huge hurdle.

I see no problem with the scenario you described outside of a few select industries. For example, pharma is problematic, but that market is so screwed up it is hardly worth talking about (publicly funded research being turned into private profits, etc.).

Personally, I would rather see IP exceptions built into treaties. For example, if you refuse to sell product A in country B, then other companies can ignore your patents as long as they only sell in country B, etc.