Impact of Globalization on Sme's

1. Introduction The magnetic core of globalization on small and strong suit enterprises (SMEs) has received a lot of attention in world-wide circles in the past few years. One of the reasons for the international accent on SMEs is that these firms make significant contributions to the economy of both growth and developed countries. SMEs contribute over 55 percent of gross domestic point of intersection and over 65 percent of total employment in high-income countries (UNCTAD, 2004). In East Asia, SMEs are major players in the export industry, accounting for intimately 56 percent and 40 percent of exports in Taiwan and South Korea, respectively. Furthermore, in many underdeveloped countries, SMEs have been identified as making significant contributions to exiguity reduction. This paper contributes to the international policy debate by examining the effect of globalization on the performance of SMEs in the United States. there are two reasons for focusing on the U.S. First, when it comes to coronations by transnational corporations (MNCs) â€" i.e., foreign direct investment (FDI) â€" the U.S. is the most globalized country in the world.

It is the worlds largest recipient of inward direct investment and the worlds largest foreign direct investor. Furthermore, MNCs contribute significantly to the U.S. economy. In 2003, MNC imports accounted for over 50 percent of total U.S. imports and MNC exports accounted for over 67 percent of total U.S. exports. In addition, MNCs employed about 25 million people in the U.S. and their gross merchandise was about 20 percent of the gross domestic product of private industries in the U.S. (Kozlow, 2006; BEA, 2006). The second reason for focusing on the U.S. is that SMEs are an important part of the US 2 If you fatality to get a full essay, order it on our website: Orderessay

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