How as globalization affected small and medium Enterprises(SMEs) in Nigeria
Answers
Nigerian producers could make use of cheap import from the developed countries.
Many large scale Nigerian companies have gone multinational with setting up operations abroad.
Nigerian companies have become technologically advanced and started e-commerce operations to take full advantage of globalisation.
Due to entry of foreign producers, Nigerian companies have not been able to compete with the multinational companies.
Globalisation is a phenomenon of the opening up of trade in countries so that technology and capital can flow unhindered.
In Nigeria, globalization has had both positive and negative impacts.
The positive impact is that SMEs are able to import technology, equipment, spare parts and raw materials from developed nations for their manufacturing processes.
This helps a lot in their development.
However often, companies cannot compete with cheap foreign made products and so fail in the open markets against this thus retarding the growth of the indigenous industries.
Also often old and outdated technology is brought in to the country under the promise that it is new.