Navigating Global Trade Policies: Challenges and Growth Prospects for Small and Medium Enterprises in the Global South

Abstract

The study explores the impact of global trade policies on SMEs in the global south, analyzing both the benefits and obstacles they face in evolving the economic landscape on the global level. In today’s world, all aspects of a nation's economy; industries, income levels, service sectors, employment, and living conditions are interconnected with the economies of its trading partners. Global trade policies significantly impact small and medium-sized enterprises in developing countries, affecting their growth, market access, and competitiveness. The interdependency of national economies has led to an increase in global trade, investment flow and business cooperation. While free trade offers opportunities for expanded markets and reduced tariffs, it also poses challenges, such as competition from larger multinational corporations and regulatory complexities. Key factors such as tariff structures, non-tariff barriers and trade agreements are examined to understand their implication on SMEs' sustainability and expansion. Using quantitative and content analysis from various documents, findings indicate that favourable trade policies can enhance SME growth, while protectionist measures and policy inconsistency often hinder their ability to compete on a global scale. Therefore, there is a need for comprehensive trade policies that balance global economic integration with the unique challenges faced by SMEs in developing nations, particularly in the Global South.