The Benefits Of Globalization

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1.4 AIM OF THE STUDY The aim of the study is to investigate the reasons which prevent SMEs from operating globally and to develop a strategy to assist SMEs in achieving globalization. The research builds on the theoretical framework that globalization is a key factor contributing to the success of SMEs. Data will be collected by distributing a standard questionnaire to a select group of business consultants who specialize in relocation or globalization of SMEs. The findings of the survey will be used to identify the constraints to global expansion and develop a practical approach to overcome these hurdles. 1.5 RESEARCH OBJECTIVES The objectives of this study are to: 1. Research the benefits of SMEs expanding globally 2. Investigate the current…show more content…
One of the most effective strategies employed by SMEs in other emerging market countries such as China, Brazil and India is the globalization of their operations. Todaro and Smith (2011:564) suggested that the effects of globalization can be seen in the progressive integration of regional economies into growing international markets as time goes on. Many definitions of the term “globalization” have been suggested however the one most applicable to this research was presented by Moran (2015:39) who describes globalization broadly as the increased levels of economic activity as a result of trade and financial interaction between countries, the transfer of ideas, knowledge and technology and the consequential impact on the social, cultural and political landscape. This research gives preference to the globalization of SMEs as opposed to the creation of multinational or international businesses. The terms “globalization”, “multinational” and “international” have been used extensively in various studies and research; however there are important differences between these entities which dictate the strategies that need to be employed and shape the business characteristics of each type. Over the years various definitions have been offered by experts in various fields of specialization, however many of these definitions tend to reflect the view of Canclini (2014:3) that globalization from an economic perspective is simply the development of international markets which results in an increase in the monetary prospective of nations. He further postulates that this global economic expansion has direct and indirect influences with regard to the socio-political structure of

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