Although globalization expose some challenges for SMEs such as foreign competitors entering domestic markets,
and domestic competitors' reducing their costs through global sourcing, moving production offshore or gaining
economies of scale by expanding into new markets, the new environment can let SMEs access to new markets and
participate in global production networks. The innovative and dynamic aspects of globalization include increased
market access, increased access to capital, and increased access to technology and information which have led to
greater income and employment opportunities. SMEs also may take the advantage of their being small in size by
offering customized and specialized goods and services. However many SMEs cannot make use of cost advantages in
mass production and some types of costs are not variable in relationship with company size (Hauser 2000; Totonchi
and Manshady, 2012:83).