Globalization and Entrepreneurship

Globalization and Entrepreneurship

Policy and Strategy Perspectives

The McGill International Entrepreneurship series

Edited by Hamid Etemad and Richard Wright

The contributors to this collection provide a wealth of new analyses of both traditional and emerging aspects of entrepreneurship, from a variety of national perspectives and from a variety of disciplines. Globalization has begun to dismantle the barriers that traditionally segregated local business opportunities and local firms from their international counterparts. Local markets are becoming integral parts of broader, global markets. As globalization proceeds apace, entrepreneurs and small businesses will play a more prominent role on the global business arena. The volume is divided into three sections. The first looks at the internationalization process itself while the second focuses on factors facilitating this process in small and medium-sized firms. The last section examines emerging dimensions in management policy.

Chapter 5: Internationalization of Australian SMEs: Challenges and Opportunities

Quamrul Alam and John Pacher

Subjects: business and management, entrepreneurship, international business


Quamrul Alam and John Pacher INTRODUCTION Globalization encompasses a wide range of issues and developments. It includes changes in business strategies in production, marketing, finance, and research and development (R&D). The increase in globalization has significantly influenced global trade and investment. Rapid technological changes in communications and transport, and an increasing trend toward deregulation of foreign exchange, foreign investment and financial markets have significantly affected the structure of industry and business competitiveness. Globalization has created greater incentives and opportunities for companies to access the various markets and knowledge sources needed to build lasting competitive advantages through continuous innovation (OECD, 2000). As well, it has brought about new competitors for SMEs in the industrialized world, especially in countries with high labour costs, such as Australia. SMEs need to search for competitive advantages across national borders in order to sustain their existence. They are faced with pressures to reduce production costs, increase productivity, and become more knowledge intensive. To achieve this end they have to internationalize their business activities. Consumers today want the best and the cheapest products, with little concern about where they are produced. Australian SMEs need to establish themselves as critical partners in the new internationalization process. This chapter examines the challenges and the opportunities that face Australian SMEs which want to internationalize their operations. The aim is to demonstrate that as the economy becomes more integrated into globalized trade and business, there is an increased need for a supportive domestic environment to help...

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