GLOBALISATION AND ITS EFFECT ON LOCAL BUSINESS – A STUDY OF CHALLENGES AND OPPORTUNITIES

AUTHOR – HARITHA K S, STUDENT AT THE TAMILNADU DR.AMBEDKAR LAW UNIVERSITY – SCHOOL OF EXCELLENCE IN LAW

BEST CITATION – HARITHA K S, GLOBALISATION AND ITS EFFECT ON LOCAL BUSINESS – A STUDY OF CHALLENGES AND OPPORTUNITIES, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (7) OF 2025, PG. 670-677, APIS – 3920 – 0001 & ISSN – 2583-2344

ABSTRACT

Globalization has become a defining feature of the contemporary world, significantly transforming economic structures, business operations, and market dynamics. This research paper explores the dual impact of globalization on local businesses, focusing on both the opportunities it presents and the challenges it imposes. As international trade barriers reduce and technological innovations increase connectivity, local enterprises gain access to global markets, foreign investments, and knowledge exchange, enabling them to grow and innovate. However, these benefits are often counterbalanced by rising competition from multinational corporations, vulnerability to global market fluctuations, cultural homogenization, and legal complexities in international trade.

Using a doctrinal research methodology, this study examines relevant economic policies, legal frameworks, trade agreements, and case studies from developing economies to understand how globalization has affected local industries. The research highlights sectors that have benefitted from global integration and those that have struggled to survive. It also analyses the role of governments in protecting and promoting local businesses through supportive regulations, infrastructure development, and capacity-building initiatives.

The paper concludes that while globalization is inevitable and potentially beneficial, its impact on local businesses depends largely on the readiness of domestic enterprises to adapt and the effectiveness of state intervention. Strategic planning, innovation, and inclusive policies are essential to ensure that globalization becomes a tool for local empowerment rather than marginalization.

Keywords: Globalization, Local Business, Challenges, Opportunities, SMEs, Trade Policy, Legal Framework, Multinational Corporations, Economic Integration, Doctrinal Research.