EFFECT OF GLOBALIZATION ON THE FINANCIAL PERFORMANCE OF MANUFACTURING FIRMS IN NAMANVE INDUSTRIAL PARK

Abstract

This study examined the impact of globalization on the financial performance of manufacturing firms in Namanve Industrial Park, Uganda. The primary objectives were to assess how trade liberalization, international competition, and global sustainable practices influence financial metrics such as return on assets, equity, and profitability. Employing a quantitative research design, the study utilized structured questionnaires distributed to a sample of 60 firms, and the data were analyzed using descriptive statistics, correlation, and regression analysis. The findings revealed that trade liberalization and global sustainable practices had a significant positive effect on financial performance, while international competition showed a borderline negative impact. The regression model explained 23.7% of the variation in financial performance. It was concluded that open trade policies and sustainable practices enhance competitiveness and operational efficiency, whereas intense international competition can pose challenges, particularly for resource-constrained firms. The study recommends that policymakers support trade facilitation and sustainability initiatives through incentives, and that firms invest in innovation and sustainability to better navigate global competition and improve financial outcomes.