As a result, even smaller and locally orientated businesses have to see themselves in a global context. SMEs have to, now, deal with increased competition as a result of globalization. Instead of competing merely with local companies, SMEs now compete with various international competitors, be they MNCs or other SMEs.
It is inappropriate to speculate that a deliberate step to cause the rupee to depreciate is in the policy agenda of the Bank of Mauritius. This perception is incorrect. World price of oil has attained unprecedented levels. It will evidently impact on the domestic price level. A depreciation of the rupee, triggered by oral stimulus, would exacerbate inflationary pressures in the economy.