Small and Medium Enterprises in Globalization Era Essay

Small and Medium Enterprises in Globalization Era - Essay Example The researcher states that there is no globally accepted definition of globalization, but for the purpose of this research, the term refers to the process of consolidating the world into one large market. The process avails many goods and services to people across the world with the removal of trade barriers among the trading nations. The process of globalization happens through three channels; flow of capital, the flow of finance and the trade in goods and services. There is also a thought that the same process would mean integrating the economy of one country with the rest of the world. As much as integrating the economy of one country with the rest of the world could mean good for the nation’s economy, the same process would mean a great deal of unfair competition to some businesses. For a better understanding of such an argument, there is a need to consider a scenario where a starting firm from a developing country competing in a giant multinational. There should be an und erstanding of the contribution of small-scale businesses to the economies of such countries. For most of such nations, the industry forms a critical part of the performance of such economies, which calls for a comprehensive policing strategy that will ensure their sustainability. Therefore, the current study analyses the impacts of globalization on the performance of small and medium-scale firms in the sea of the world’s economic powers. The main theme of this work is to weigh the performance of small businesses before and after the invention of globalization and determine the effects of the processes. Globalization signifies the process of liberalization and internationalization that transforms the world into a small village because of the effects realized. There has been a rise in the levels of competition in every field with all nations across the globe engaging in global wars to make their economies sustainable enough for the populations.