Triad and SME’s in International Markets
Submit a 2000 words paper on the topic Triad and SME’s in International Markets. MNEs have been significant in complex networks in low-cost economies which saw the rise of SMEs in those countries. As a result, the connection between MNEs within TRIAD and SMEs in low-cost economies is diverse in the sense that the aspect of market competition and economic rivalry has prevailed linking the two in which MNEs have been perceived as dominating the market in low-cost economies at the expense of local SMEs. However, the affiliation can also be described as being complementary because the rise of SMEs can be attributed to the rise of strategic connections and sophisticated supply chains that have been brought about by increased MNEs of TRIAD, which cleared the way for the enhancement of SME activities in low-cost economies. In analyzing the link between MNEs and SMEs, it is necessary to focus on the business environment in low-cost economies prior to the entry of TRIAD MNEs and how their activity spurred growth among local SMES. There is a symbiotic relationship linking TRIAD based MNEs and SMEs in low cost economics whereby MNEs are perceived as potential partners on economic growth and expansion of trade linkages and thus welcomed and supported by the local SMEs through supply networks and other business cooperation mechanism(United Nations, Transnational Corporations and Management Division, 1993, 65-71). As a matter of fact, the relationship involving SMEs and MNEs has been bolstered by governments and other trade agencies in low-cost economies who have realized the huge potential of trade linkages involving the two. Therefore, low-cost economies have laid several incentives in place for MNEs to cooperate with SMEs creating a dynamic liaison that is beneficial to trade. Attracting MNEs particularly those with manufacturing plants has become the focus of most local economic development agencies that endeavor to promote an enabling environment for the respective MNEs due to the many benefits associated with MNE activities in local businesses. Apart from the creation of job opportunities in low-cost economies, MNEs have been identified and credible agents in the development of strategic clusters in low-cost economies that could spur economic development. More particular has been the fact that MNEs can augment the development of SMEs in low-cost economies through purchasing inputs and material components thus creating a niche for local businesses. The connection involving MNEs of TRIAD and SMEs of low-cost economies are primarily based on .the opportunities for growth and expansion that SMEs can obtain from MNEs.
Our experts will write you a top-quality paper and revise it an unlimited number of times until you're 100% satisfied - or offer a refund.