The paper "SMEs and Globalisation" is a great example of a report on macro and microeconomics. SMEs have been widely debated in the context of globalization. It is because of the challenges and opportunities globalization has imposed on SMEs. This paper looks at some of such challenges and opportunities, delves deep into what needs to change at the SME level, and what role could government plays in making SMEs more effective and productive. Introduction In today's business globalization is a major driver. The way markets have been internationalized has had its impact on every business; big or small.
New competitors are making inroads into markets that were formerly considered as protected domestic markets. Adding stiffness to doing business is the fast pace and rapidity with which the markets are changing dynamically. Globalization is essentially new economic and political scenarios brought about by the integration of technology thus resulting in, among many other things, a reduction in costs of distances. This has enabled businesses to operate in multiple markets in which they can transact much faster. That means the direct fallout of this is on the SMEs which either need to work smartly or see themselves neck to neck in a global context, even if that might not necessarily mean that they expert their services or launch their products in other destinations.
Globalization has resulted in a complex web of activities that either directly or indirectly put pressure on SMEs. On account of this changing business dynamics, SMEs have to see themselves in an entirely different light and even if they intend to do operate their businesses locally, the strategies have to be at par with the global players.
What is to be read between the lines is that the role of SMEs in the global context becomes all the more interesting. Earlier it was thought that globalization would render the work of SMEs defunct or they would not be able to compete with the powerful global companies. But this mindset is gradually changing and it has begun to be understood that while SMEs stand chances of being wiped out on account of globalization, they could even act as reliable agents for big brands or companies which have made entries into the markets in which SMEs ruled the roost earlier.
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