Global trade has a significant impact on the local economies of various countries. This impact can be positive or negative, depending on how the people and government of a country respond to it. One of the positive aspects of global trade is increased market access. With international trade, local products can be easily exported to world markets. This provides greater opportunities for small and medium entrepreneurs to increase revenue. For example, SMEs in Indonesia can export handicraft products to Europe, expanding their market reach. However, on the other hand, negative impacts also arise. Competition from foreign products often makes local products unable to compete. For example, cheaper imported products can erode the market share of local products, causing many small businesses to be forced to close and resulting in an increase in unemployment. This condition is especially visible in the agricultural sector, where local farmers find it difficult to compete with the price and quality of agricultural products from other countries. Global trade also often creates injustice. In many cases, the profits from trading are uneven. Large companies often get more benefits than local businesses. This can lead to the concentration of wealth in the hands of a few and increase social inequality. Developing countries with limited infrastructure are also often unable to compete effectively in global markets. Local economic performance is also influenced by trade regulations implemented by each country. Protectionist policies, such as tariffs and import quotas, can help protect domestic industries. However, if implemented excessively, this could hamper economic growth and trigger retaliation from other countries that feel disadvantaged. Therefore, it is important for the government to create a balanced policy between protecting local industry and promoting free trade. Innovation is an important factor in dealing with the impact of global trade. Companies that are able to adapt to the needs of foreign markets tend to be more successful. They invest in research and development to improve product quality to meet international standards. In this context, improving the skills of the local workforce is also very important. Relevant training programs can help increase the competitiveness of local products in the global market. Furthermore, the environmental impacts of global trade also need to be considered. Exploitation of natural resources to meet international market demand can cause ecological damage in local areas. Therefore, sustainable approaches in trade need to be strengthened, one of which is by encouraging environmentally friendly products and responsible business practices. In conclusion, the impact of global trade on local economies is very complex. Although it offers great opportunities, its negative impacts cannot be ignored either. Therefore, stakeholders, including government, business actors and society, need to work together to ensure that the benefits of global trade can be felt by all levels of society. Inclusive and sustainable economic policies are the key to navigating the challenges faced by local economies in the era of globalization.